New EPFO app soon to allow provident fund withdrawals via UPI

Now, Employees' Provident Fund Organisation (EPFO) subscribers can withdraw their EPF money through UPI (Unified Payments Interface) gateway. According to a top source, the retirement fund body will be launching a newly designed mobile application in April this year, through which the amount can be deposited directly into the bank accounts.

Also read: EPFO liberalises rules, allows up to 100 pc EPF withdrawal

The Union labour ministry is developing a plan where a certain proportion of the EPF will be frozen, and the rest can be withdrawn directly to the bank account via the UPI, the source told PTI.

Dedicated mobile app

With the dedicated app, which aims at improving accessibility and delivery of services, the members can avail other services such as viewing passbook and balance, in addition to transferring funds to their bank accounts. They will be allowed to use their linked UPI PIN to complete the transaction, ensuring a secure transfer of funds to their bank accounts.

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

Also read: EPFO mandates UAN activation via UMANG app from August 7

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

Settlement process

At the moment, members of EPFO have to apply for withdrawal claims to access their EPF money, which is time-consuming.

Under the auto-settlement mode, the withdrawal claims are settled electronically without manual intervention within three days of filing the application form.

The limit of this auto-settlement mode has already been raised to Rs 5 lakh from the existing Rs 1 lakh.

Also read: EPFO raises auto-settlement limit for advance claims from PF accounts to Rs 5 lakh

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

EPFO, which has about eight 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, all members have to file claims to access their own EPF funds.

Service upgrade

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

The source said that the EPFO cannot allow its members to withdraw money directly from the EPF accounts because the body does not have any banking licenses.

Also read: EPFO simplifies PF account transfer process on job change

However, it added that the government wants to improve EPFO services to be on par with banks.

(With agency inputs)