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In a major development, the Ministry of Labor and Employment has approved the National Payment Corporation of India’s (NPCI) recommendation to allow Employees’ Provident Fund Organization (EPFO) members to withdraw funds through Unified Payment Interface (UPI) and ATMs. This move aims to enhance efficiency, reduce transaction time, and provide greater ease of access for over 7 crore EPFO members.

New Delhi: The Employees’ Provident Fund Organization (EPFO) is set to revolutionize fund withdrawals by introducing UPI and ATM facilities for its members. Currently, withdrawing provident fund (PF) money requires processing through traditional banking channels, which can take up to 2-3 days. However, with the implementation of these digital withdrawal options, transactions will be processed within minutes.

Labor and Employment Secretary Sumita Devra confirmed that the Ministry of Labor and Employment has given the green light to NPCI’s recommendation. Speaking to news agency ANI, she revealed that EPFO members will be able to withdraw their provident fund via UPI and ATMs by the end of May or early June 2025.

Under this new system, EPFO members will be able to view their PF account balance through UPI and withdraw up to ₹1 lakh instantly. The automated system will ensure that funds are transferred without delays, providing members with quick and hassle-free access to their savings. Additionally, members will have the flexibility to choose their preferred bank account for fund transfers.

This digital transformation will not only simplify withdrawals but also expand the list of permissible reasons for withdrawal. Now, members can withdraw funds for purposes such as education, home purchases, and marriage, making the process more user-friendly and accessible.

EPFO has been making significant strides in digitization to streamline its operations. It has integrated over 120 databases to simplify and expedite the claims process. As a result, claim processing time has been reduced to just three days, with 95% of claims now being automated. Efforts are ongoing to further enhance efficiency and provide seamless services to members.

Currently, EPFO members cannot withdraw their provident fund using UPI or ATMs. The introduction of this facility will significantly reduce the withdrawal processing time from days to just minutes. This initiative is expected to provide immense relief to over 7 crore EPFO subscribers, ensuring quick and easy access to their funds when needed.

• EPFO members to get UPI and ATM withdrawal options by May or June 2025.

• Instant fund access up to ₹1 lakh without delays.

• Expanded withdrawal categories for education, housing, and marriage.

• 95% of claims automated, with processing time reduced to three days.

• Relief for 7 crore EPFO members, making fund access quicker and more convenient.

With these upcoming changes, EPFO is set to offer a more seamless and user-friendly experience for its members, ensuring faster and more efficient financial transactions.