NEW DELHI: EPFO subscribers will be able to withdraw their employees’ provident fund (EPF) directly to their bank accounts through UPI payment gateway by April this year, a top source has said.
The Labour Ministry is working on a project where a certain proportion of the EPF will be frozen, and a large chunk will be available for withdrawal through their bank account using Unified Payment Interface (UPI), the source said.
He explained that the subscribers will be able to see the eligible EPF balance available for transferring into their seeded bank accounts.
They will be allowed to use their linked UPI pin for completing the transaction to ensure a secure transfer of money into their bank accounts.
Once the money is transferred into bank accounts, the members can use the money the way they want, like making payments electronically or withdrawing through bank ATMs using debit cards.
The source stated that the Employees’ Provident Fund Organisation (EPFO) is trying to resolve software glitches for the smooth implementation of this system, which will benefit around eight crore members.
Presently, the members of EPFO have to apply for withdrawal claims to access their EPF money, which is time-consuming.
Under the auto-settlement mode, the withdrawal claims are settled electronically without manual intervention within three days of filing the application form.