EPFO Members to Withdraw EPF Funds via ATMs and UPI Soon

In a significant move to enhance convenience for its subscribers, the Employees' Provident Fund Organisation (EPFO) is working on a project that will allow members to withdraw their Employees' Provident Fund (EPF) money directly through ATMs and UPI. This initiative aims to streamline the withdrawal process by linking EPF accounts with bank accounts, enabling easier access to funds.

According to sources within the labour ministry, a portion of the EPF will be frozen while a substantial amount will be made available for withdrawal through various modes, including UPI and ATM debit cards. Although there are some software challenges to overcome, efforts are underway to resolve these issues and implement the new system.

Currently, EPFO members must apply for withdrawal claims, a process that can be time-consuming. However, the introduction of an auto-settlement mode has improved efficiency, allowing claims to be settled electronically within three days of application. Recently, the limit for this auto-settlement mode was increased from ₹1 lakh to ₹5 lakh, facilitating quicker access to funds for purposes such as medical emergencies, education, marriage, and housing.

With over 7 crore members, the EPFO first introduced online auto-settlement of advance claims during the COVID-19 pandemic to provide timely financial assistance. Despite this progress, members still need to file claims to access their EPF, which the new system aims to simplify. While the EPFO lacks banking licenses to allow direct withdrawals, the government is committed to enhancing EPFO services to match banking standards, ultimately reducing the burden of processing over 5 crore claims annually.

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