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Employees' Provident Fund Organization (EPFO) subscribers will be able to receive their PF funds directly into their bank accounts using the UPI payment gateway through a new mobile application, which will be launched in April this year. Sources say the Ministry of Labor is working on a project that will secure a certain portion of EPF deposits, while a larger portion will be available for withdrawal through a bank account via the Unified Payments Interface (UPI). The source further stated that the EPFO ​​will launch a new mobile app through which members will be able to withdraw funds using the UPI gateway, as well as avail other services such as passbook balances.

This is how money will be transferred through the new app.
Currently, members use either the Universal Account Number (UAN) portal or the Umang app to access their EPF accounts and avail services. These services will remain available on both platforms, while the new dedicated app will improve access and delivery of services to EPFO ​​subscribers. The source said that subscribers will be able to view the eligible EPF balance amount available for transfer to their bank accounts through the mobile app. They will be allowed to use their added UPI PIN to complete the transaction, ensuring secure transfer of funds between bank accounts. The EPFO ​​is currently testing this service. The Labor Ministry is expected to launch the app on a large scale in April this year.

This is the current system:
Currently, EPFO ​​members have to apply for a withdrawal claim to withdraw money from their EPF account, which is quite time-consuming. Under the automatic settlement system, withdrawal claims are settled electronically within three days of submitting the application form, without any manual intervention. The limit for this automatic settlement system has been increased from the current Rs 1 lakh to Rs 5 lakh. This allows a large number of EPFO ​​members to withdraw money from their EPF accounts within three days for purposes such as illness, education, marriage, and housing.

It was launched during COVID-19.
The EPFO, which has approximately 80 million members, launched an online automatic settlement system for advance claims to provide quick assistance to those facing financial hardship during the COVID-19 pandemic. However, all members are required to file a claim to withdraw money from their EPF account. The new system is being developed to avoid this time-consuming process and reduce the burden on the EPFO, which processes over 50 million claims, mostly for EPF withdrawals, every year. The source explained that the EPFO ​​cannot allow its members to withdraw money directly from EPF accounts because it does not have a banking license. However, the source added that the government wants to improve EPFO's services to be on par with banks.

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