In a move aimed at modernising retirement fund access, EPFO is working on a new mobile application that may allow subscribers to withdraw a portion of their EPF savings instantly through the UPI payment gateway. The app, expected to be launched around April, is part of efforts to reduce claim processing time and improve digital service delivery, sources told PTI.The labour ministry is working on a project where a certain proportion of EPF will be frozen, while a large portion will be available for withdrawal through bank accounts using Unified Payments Interface (UPI), the source said.
New app to add UPI withdrawal
The Employees’ Provident Fund Organisation is set to roll out a new dedicated mobile application through which members will be able to withdraw EPF money using the UPI gateway and access services such as passbook balance, the source said.Currently, members use the Universal Account Number (UAN) portal or the UMANG app to access EPF services. The source said these platforms will continue to function, while the new app is expected to further improve accessibility and service delivery for subscribers.Subscribers will be able to view the eligible EPF balance available for transfer to their seeded bank accounts through the mobile application. They will be able to use their linked UPI PIN to complete transactions, ensuring secure transfer of funds to bank accounts.The EPFO is currently conducting trials using 100 dummy accounts to improve system efficiency and remove possible technical glitches. The labour ministry is likely to launch the new app with a major rollout event in April, the source said.
Reducing claim delays and improving access
At present, EPFO members must file withdrawal claims to access EPF money, a process that can be time-consuming. Under the auto-settlement mode, claims are settled electronically without manual intervention within three days of filing the application.The auto-settlement withdrawal limit has already been increased to Rs 5 lakh from Rs 1 lakh earlier, allowing members to access funds faster for illness, education, marriage and housing purposes.EPFO, which has about 8 crore members, first introduced online auto-settlement of advance claims during the COVID-19 pandemic to help members facing financial stress. However, members still need to file claims to access EPF funds.The new system is being developed to eliminate this time-consuming process and reduce the operational burden on EPFO, which settles over 5 crore claims annually, mostly related to EPF withdrawals.The source said EPFO cannot allow direct withdrawal from EPF accounts because it does not have banking licences, but the government aims to upgrade EPFO services to match banking-level convenience.
