EPFO members may soon withdraw EPF funds via ATM, UPI
What's the story
The Employees' Provident Fund Organization (EPFO) is working on a plan to allow its members to withdraw their Employees' Provident Fund (EPF) money directly through ATMs or Unified Payments Interface (UPI). The move is part of the labor ministry's efforts to simplify and expedite the withdrawal process for EPFO members. However, this facility will only be available after linking bank accounts with their EPFs.
Account integration
Linking of EPF account with bank account
To facilitate this new service, the EPFO will have to link its members' EPF accounts with their respective bank accounts. A senior official from the labor ministry said that while a portion of the EPF amount may remain frozen, a major part would be accessible for withdrawal through debit cards or UPI. This would make accessing one's own money easier and faster than before.
Existing procedure
Current withdrawal process
At present, members have to file a claim online or offline to withdraw their EPF money. The process can be time-consuming, even with the EPFO's auto-settlement system that clears claims within three days. However, the organization recently raised the auto-settlement limit from ₹1 lakh to ₹5 lakh for medical emergencies, education, housing needs, or marriage expenses.
Efficiency goal
EPFO can't allow cash withdrawals directly like a bank
The new plan from EPFO is aimed at reducing paperwork and saving time for both the organization and its members. The move could also help cut down on withdrawal requests. EPFO currently processes over five crore withdrawal requests annually. However, it's important to note that EPFO can't allow cash withdrawals directly like a bank since it doesn't have a banking license. Hence, the government is working to modernize EPFO's services to make them function more like standard banking services.