EPFO to Launch Quick Withdrawal Facility Through UPI and ATMs: Check the Withdrawal Limit

The Employees’ Provident Fund Organisation (EPFO) is announcing a significant change regarding PF withdrawals.

EPFO members will be able to withdraw funds through UPIs and ATMs. Therefore, they will not have to go through the time-consuming process for PF withdrawals. The initiative is supported by the Ministry of Labour and Employment and was introduced after receiving approval from the National Payments Corporation of India (NPCI). The NPCI monitors the digital payment system in India.

What is the Limit for Withdrawal?

Sumita Dawra, Secretary at the Ministry of Labour and Employment, said that Employees will be able to instantly withdraw up to Rs. 1 lakh from their PF fund. This will help them to meet their financial needs without any complexity. By the end of May or June, the EPFO members will be able to check their PF balance on UPI. They can choose the preferred bank account to which they want to transfer the money.

At present, PF withdrawal consumes a lot of time. The members are required to submit online claims and wait for the approvals. This approval can sometimes take weeks. With the new initiative, employees will be able to make instant transactions through UPI.

EPFO Expands Withdrawal Options

The EPFO is also expanding the withdrawal options to offer more flexibility to its members. In addition to the existing provision for medical emergencies, it also enables the EPFO members to withdraw money for education, housing and marriage. This expansion focuses on offering enhanced financial flexibility to the country’s workforce.

Dawra also highlighted that EPFO has upgraded its digital infrastructure by integrating up to 120 databases to simplify withdrawal. The time for claim processing has been reduced to just three days. Additionally, 95% of claims are now handled automatically, and the EPFO is working on further improvements to enhance the system.

The efforts made for digitalisation have benefitted pensioners. Earlier, the withdrawals were restricted to a few selected branches. Since December last year, 78 lakh pensioners now can access their pension funds from any bank branch without restrictions. The EPFO continues to broaden its reach, serving more than 7.5 crore active members, and around 10 to 12 lakh new members are joining each month. The organisation operates 147 regional offices across India.