EPFO Withdrawal Rules: The EPFO is introducing a major convenience for its millions of members. Employees will now be able to withdraw money directly from their Provident Fund (EPF) accounts through UPI. The amount will be transferred directly to their linked bank accounts.
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EPFO Withdrawal Rules: The EPFO is rolling out a major convenience for its millions of members. Employees will now be able to withdraw money directly from their Provident Fund (EPF) accounts through UPI. The funds will be transferred directly to their linked bank accounts. According to reports, this feature may be available starting in April.
The EPFO is currently testing this system. Technical testing is being conducted using approximately 100 dummy accounts to ensure no issues arise before launch. This new feature will also be integrated with the UAN portal and the UMANG app.
Under the new system, members will be able to withdraw up to 75% of their available EPF balance instantly. They must log in to the mobile app or the EPFO portal. There, they can select valid reasons such as illness, education, marriage, or housing and submit a withdrawal request.
To transfer the amount, the payment must be verified using the UPI PIN. The money will then be transferred directly to the bank account. Currently, the EPFO’s auto-settlement system settles claims up to Rs 5 lakh within three days. However, the UPI system will allow for almost instant withdrawal.
According to current rules, members can withdraw up to 75% of the amount. The full amount can only be withdrawn if the individual has been unemployed for at least one year.
The new facility will also allow members to view their EPF passbook balance. The EPFO processes over 5 crore withdrawal claims annually. The UPI-based system will expedite the process and provide significant relief to employees.
