NEW DELHI: The Employees' Provident Fund Organisation (EPFO) is set to introduce UPI for processing claims, aiming to improve efficiency and reduce transaction time, labour and employment secretary Sumita Dawra said on Tuesday.
The Labour and Employment ministry has approved the recommendation of the National Payments Corporation of India (NPCI), which operates retail payments and settlement systems in India.
Sumita Dawra, in an interview with the news agency ANI, said that EPFO members will soon be able to withdraw their provident fund through UPI and ATMs by the end of May or June this year.
"By May-end or June, members will experience a transformative change in accessing their provident funds. They will be able to view their PF account balance directly on UPI, instantly withdraw up to Rs 1 lakh through an automated system, and choose their preferred bank account for transfers," she said.
The secretary mentioned that withdrawal options have been expanded to include funds for housing, education, and marriage, along with existing provisions for sickness.
"The EPFO has made significant strides in digitalizing its processes, integrating over 120 databases to streamline the withdrawal process. Claim processing time has been dramatically reduced to just 3 days, with 95% of claims now automated and plans to further simplify the process underway," Dawra added.
Currently, EPFO members cannot withdraw PF through UPI. Once introduced, the claim process is expected to be completed within hours or even minutes, compared to the current 2–3 days.
Just as UPI has simplified digital payments, this feature is expected to make PF withdrawals easier for members.