EPFO UPI Withdrawal: The Employees’ Provident Fund Organization (EPFO) is set to allow its eight crore members to withdraw their eligible share of their Provident Fund (EPF) directly through the Unified Payment Interface (UPI). Union Labor and Employment Minister Mansukh Mandaviya recently confirmed that the testing of the UPI payment gateway has been completed and the service will be launched for members soon.
“We have completed testing the feature where members can withdraw EPF (Employees’ Provident Fund) through the use of UPI payment gateway. The amount withdrawn will be directly transferred to the member’s bank account,” Mandaviya told reporters.
The EPFO 3.0 framework reduces the time for withdrawal of funds from weeks to seconds. By removing the need for manual employer approval, the updated system establishes a completely paperless and frictionless claims experience.
This directly addresses the current system pain points, where processing takes 7 to 10 days, withdrawals over Rs 1 lakh trigger manual verification, and minor document discrepancies lead to serious delays or complete rejection.
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How will EPFO 3.0 work:
- On the Umang app, members will be able to check how much money they can transfer directly to their linked bank accounts.
- Once the money is transferred to the bank accounts, you can use that money as you wish.
- Tap on a UPI-enabled ATM or use UPI transfer.
Features of UPI Withdrawal System:
- Instant Transfers: Members can transfer eligible funds to their linked bank accounts almost instantly using their UPI PIN, bypassing the traditional claim filing process, which can take several days. This enables a large number of EPFO members to access their EPF money within three days for illness, education, marriage and housing purposes.
- Withdrawal Limits: To ensure protection of your retirement savings, 25 per cent of the total fund will always be locked in the PF account. This means that only the eligible portion, 50 percent to 75 percent of the balance, can be withdrawn through UPI or ATM.
- Remaining separation: The app will clearly display “Eligible Balance” for withdrawal while keeping the minimum balance locked.
To avail this facility, members must have an active Universal Account Number (UAN). Additionally, your Aadhaar and PAN card must be linked and verified with your UAN. Furthermore, your name and date of birth should exactly match both your PF records and your Aadhaar card.
To ease access to PF related information, the system is also being integrated with WhatsApp chatbot, through which members will be able to check their balance and withdrawal eligibility by simply sending a message.
