Employees' Provident Fund Organisation (EPFO) subscribers may soon be able to withdraw their provident fund money directly through UPI and receive it instantly in their bank accounts as the government has completed testing of the new system, Labour Minister Mansukh Mandaviya said on Tuesday.
Speaking to reporters, the minister said EPFO has been working on several initiatives to improve service delivery and reduce delays faced by subscribers.
"We have completed the testing of the facility where members can withdraw EPF (employees' provident fund) through the use of the UPI payment gateway. The withdrawn amount will be directly transferred into the bank account of the member," the minister said.
How The New EPFO-UPI System Will Work
As per reports, under the proposed system, EPFO subscribers will be able to check the amount available for withdrawal and transfer it directly into their bank accounts.
To complete the transaction securely, users will need to authenticate the payment using their UPI PIN.
The labour ministry has been working on a model where a part of the EPF balance will remain frozen under existing rules while the remaining eligible amount can be withdrawn instantly using UPI.
Once the money reaches the subscriber's bank account, it can be used immediately for digital payments, bank transfers or ATM cash withdrawals using debit cards.
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EPFO To Launch WhatsApp Services
Apart from the UPI withdrawal facility, the labour ministry is also preparing to introduce EPFO services through WhatsApp.
According to the government, the idea behind this move is to improve outreach and simplify communication with subscribers especially because WhatsApp is widely used across India.
Under the new system, members will be able to start a conversation with EPFO by simply sending “Hello” to the organisation's verified WhatsApp number marked with a green tick.
Subscribers can also choose to receive EPFO-related updates and messages on their registered mobile numbers.
The ministry said communication through WhatsApp will be available in local and vernacular languages to make the platform easier to use for people across different regions.
The system will also provide 24/7 support through automated responses for common queries.
Focus On PMVBRY Beneficiaries And Aadhaar Issues
The WhatsApp initiative will also focus on helping members covered under PMVBRY (Pradhan Mantri Viksit Bharat Rozgar Yojana) who still have pending issues linked to Aadhaar authentication or Direct Benefit Transfer (DBT) activation.
According to the ministry, members facing problems related to UIDAI Face Authentication Technology or Aadhaar-linked bank account verification will receive targeted assistance directly through WhatsApp.
The service is expected to be launched within a month.
How Much EPF Money Can Be Withdrawn Through UPI?
While EPFO has not yet officially announced the withdrawal limit for the upcoming UPI-based facility, earlier reports around the proposal had indicated that subscribers may be allowed to withdraw up to 75% of their eligible EPF balance instantly.
But the final withdrawal cap, eligibility conditions and transaction rules are still awaited from EPFO and the labour ministry.
Once launched, subscribers are expected to be able to check the amount available for withdrawal directly on the platform before transferring it using their UPI PIN.
How EPF Withdrawal Works Currently
At present, EPFO subscribers need to submit withdrawal claims to access their provident fund savings. This is time-consuming.
Under the existing auto-settlement system, eligible claims are processed electronically without manual intervention, usually within three days of application.
The government has also increased the auto-settlement limit from Rs 1 lakh to Rs 5 lakh. This allows more subscribers to access their PF savings for needs such as medical emergencies, education, marriage and housing expenses.
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