The EPFO is permit to direct withdrawals of EPF through ATMs and UPI in the near future

EPFO members may soon have the opportunity to withdraw their Employees’ Provident Fund (EPF) funds directly through ATMs or UPI, provided their bank accounts are linked to their EPF.

NEW SYSTEM IN WORKS

A high-ranking official has disclosed that the Ministry of Labour is currently developing this new initiative. In order to implement this plan, EPF accounts will be connected to the bank accounts of the members. A segment of the EPF funds may remain inaccessible, however, a significant amount will be available for withdrawal through debit cards or UPI.

CURRENT WITHDRAWAL PROCESS

Currently, if you wish to withdraw your EPF funds, you must submit a claim either online or offline. This procedure may require some time. Although the EPFO has implemented an auto-settlement system that processes claims within three days, it is still necessary for you to file a claim. Recently, the EPFO raised the auto-settlement threshold from Rs 1 lakh to Rs 5 lakh. This adjustment allows members to have up to Rs 5 lakh automatically cleared within three days for purposes such as medical expenses, education, housing, or marriage.

WHY IS THE CHANGE NEEDED

The EPFO, which caters to more than 70 million individuals, initially introduced online auto-settlement for advance claims during the COVID-19 pandemic to assist members facing financial difficulties. However, individuals are still required to submit claims in order to access their EPF. The new initiative aims to eliminate this requirement and reduce the burden on the EPFO, which processes over 50 million withdrawal requests each year.