New EPFO Mobile App To Enable Direct EPF Withdrawals Through UPI From April

New Delhi, Feb 9: Subscribers of retirement fund body EPFO will be able to withdraw their Employees’ Provident Fund (EPF) directly into their bank accounts through the UPI payment gateway using its newly designed mobile application, which is set to be launched in April this year, a top source said.

The labour ministry is working on a project where a certain proportion of the EPF will be frozen, while a large chunk will be available for withdrawal through bank accounts using the Unified Payment Interface (UPI), the source told PTI.

New mobile application

The source further informed that the Employees’ Provident Fund Organisation will roll out a new mobile application through which members will be able to withdraw their EPF money using the UPI gateway, as well as avail other services such as viewing their passbook balance.

Currently, members use either the Universal Account Number (UAN) portal or the UMANG app to access their EPF accounts and avail services.

The source said these services will remain available on both platforms, while the new dedicated app will further improve accessibility and service delivery for EPFO subscribers.

How the system will work

He explained that subscribers will be able to view the eligible EPF balance available for transfer to their seeded bank accounts on the mobile application. They will be allowed to use their linked UPI PIN to complete the transaction, ensuring secure transfer of funds to their bank accounts.

The source stated that EPFO is presently conducting trials using 100 dummy accounts to improve the efficacy of the service and remove any technical glitches.

The labour ministry is likely to roll out the new app with considerable fanfare in April this year.

Current withdrawal process

Presently, EPFO members have to apply for withdrawal claims to access their EPF money, a process that is time-consuming.

Under the auto-settlement mode, withdrawal claims are settled electronically without manual intervention within three days of filing the application. The limit under this auto-settlement mode has already been raised to Rs 5 lakh from the earlier Rs 1 lakh.

This facilitates a large number of EPFO members to access their EPF money within three days for purposes such as illness, education, marriage and housing.

EPFO, which has about 8 crore members, first introduced online auto-settlement of advance claims during the COVID-19 pandemic to provide quick assistance to those facing financial crunch.

However, members still have to file claims to access their EPF funds.

Aim to reduce burden

The new system is being developed to avoid this time-consuming process and reduce the burden on EPFO, as over 5 crore claims, mostly related to EPF withdrawals, are settled every year.

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The source said EPFO cannot allow members to withdraw money directly from EPF accounts as the organisation does not have banking licences. However, the government wants to improve EPFO services to bring them on par with banks, the source added.

(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)