Provident fund new rules: EPFO to bring PF to fingertips soon with ATM and UPI integration

The Employees’ Provident Fund Organisation (EPFO) is working on a significant change that could allow its members to withdraw provident fund (PF) money directly using ATMs and Unified Payments Interface (UPI). This initiative aims to make access to retirement savings quicker and more convenient, aligning with ongoing efforts to simplify the claim process. The labour ministry is reportedly spearheading this project, which would enable real-time withdrawals akin to accessing funds in regular savings accounts.

This proposed system is expected to eliminate the need for filing withdrawal claims online or offline, thus providing unprecedented ease for EPF members. However, the plan includes restrictions to ensure a portion of the EPF balance remains frozen, safeguarding long-term retirement savings. This development is part of a broader strategy to improve the efficiency of fund access, although EPFO is not a licensed bank and cannot operate entirely like one.

Currently, EPFO members must submit claims, either online or offline, to access their EPF balance. The auto-settlement feature, introduced during the COVID-19 pandemic, has already accelerated the process, but it typically takes up to three days even with automation. By integrating ATM and UPI access, the organisation seeks to reduce these delays further. This would mark a significant shift in how members interact with their retirement funds, offering a level of convenience that has not been available before.

Recent changes by EPFO also include the removal of the requirement to upload a scanned image of a cheque or bank passbook during the claim submission process. This adjustment aims to reduce errors and streamline the documentation process. Additionally, the need for employer verification for bank account updates has been removed, with Aadhaar-based authentication now being used instead. These changes are expected to make the entire process much more user-friendly.

The government has increased the auto-settlement limit from Rs 1 lakh to Rs 5 lakh, allowing more users to receive advance funds faster without manual intervention. This adjustment is part of EPFO’s broader reforms to ease fund access. Software integration and backend system upgrades are being developed to support the new withdrawal functionalities, although no timeline for rollout has been announced yet. The potential for this system to transform fund accessibility is significant, promising a future where members can manage their funds with greater autonomy.

The new system’s implementation will require careful planning and updates to EPFO’s software infrastructure. While members will soon enjoy more direct access to their funds, EPFO must ensure that its systems are robust enough to handle the increased transaction volumes. The success of this initiative will depend heavily on the seamless integration of new technologies and processes.

These changes reflect EPFO’s commitment to making the claim process more user-friendly and efficient, aligning with its goal to enhance the overall experience for its millions of members across the country. By incorporating modern banking conveniences like ATM and UPI access, EPFO aims to significantly improve the accessibility of retirement savings. This forward-thinking approach positions EPFO as a leader in modernizing financial services for its members.

(With agency inputs)