The Employees' Provident Fund Organisation (EPFO) is set to introduce a major change to PF withdrawals with instant access through UPI and ATMs. Starting by the end of May or early June 2025, EPFO members will no longer have to deal with lengthy procedures to withdraw funds.
The initiative, backed by the Ministry of Labour and Employment, comes after approval from the National Payments Corporation of India (NPCI), which oversees digital payment infrastructure in the country.
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How Much Can You Withdraw?
Sumita Dawra, Secretary, Ministry of Labour and Employment, said that employees will have instant access to their PF funds with a withdrawal limit of up to Rs 1 lakh. She told news agency ANI that by May-end or June, members will be able to check their PF balance directly on UPI and withdraw funds instantly through an automated system. They can select their preferred bank account for transfers. The Rs 1 lakh withdrawal limit will enable members to meet urgent financial needs with ease.
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Currently, PF withdrawals involve a time-consuming process. EPFO members have to submit online claims and wait for approvals, which sometimes can take weeks. With the UPI integration, employees will also be able to check their balances and make instant transactions.
Expanded Withdrawal Options
The EPFO is also widening the scope of fund withdrawals, allowing members to withdraw for housing, education and marriage, in addition to the existing provision for medical emergencies. This expansion aims to provide greater financial flexibility to the country's workforce.
Dawra highlighted that EPFO has improved its digital infrastructure by integrating over 120 databases to simplify withdrawals. The claim processing time has been cut down to just three days, with 95% of claims now automated, and further improvements are in the pipeline.
More Flexibility For Pensioners
Pensioners have also benefited from recent digitalisation efforts. Since December last year, 78 lakh pensioners have been granted unrestricted access to their funds from any bank branch. Previously, withdrawals were limited to select branches.
The EPFO continues to expand its reach, with over 7.5 crore active members and an addition of 10-12 lakh new members every month. Its 147 regional offices cater to employees across the country.
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