EPFO Update: EPFO (Employees Provident Fund Organization) is soon going to provide employees the facility to withdraw PF through UPI and ATM. According to an IANS report, this new facility can start by the end of May 2025 or early June. At present, one has to go through a long process to withdraw PF amount, but this new facility will make this task much easier. This initiative has received the support of the Ministry of Labor and Employment and it has also received the approval of the National Payments Corporation of India (NPCI).

Now withdrawal up to Rs 1 lakh

Secretary of the Ministry of Labor and Employment, Sumita Dawar, said that EPFO ​​can make big changes to provide relief to its crores of members. Under this, now employees will be able to withdraw an amount of up to Rs 1 lakh immediately in an emergency. Apart from this, members will now be able to check their PF balance directly on the UPI platform and transfer the money to the bank account of their choice without any delay. This facility will be especially helpful in situations when money is needed immediately.

Claims will be processed quickly!

EPFO i.e. Employee Provident Fund Organization is now working towards making the process of withdrawing PF easier and faster. Currently, it takes several days or weeks to get the money after making an online claim. But now EPFO ​​is going to link UPI to this process, which will make withdrawing money even simpler and faster.

Apart from this, EPFO ​​is also increasing the list of situations in which money can be withdrawn from PF. Till now, medical emergency, buying or constructing a house, repaying home loan, Withdrawal of money is allowed for children’s education after class 10, marriage, unemployment, purchase of equipment for disabled persons, damage to property due to natural disaster, investment in Senior Pension Scheme and (partial) withdrawal one year before retirement.

Central PF Commissioner

According to EPFO’s Central PF Commissioner Amit Dawra, so far more than 120 databases have been linked to the digital system, due to which the claim processing time has come down to just 3 days. He said that now 95% of the claims are being processed automatically. The system will be further improved in the coming time. Pensioners are also getting the benefit of digital changes. From December 2024, about 78 lakh pensioners are able to withdraw money from any bank branch across the country. Earlier, money could be withdrawn only from a few selected branches.

What the government said in Parliament

EPFO has decided to retain the interest rate on Provident Fund (PF) at 8.25% for the financial year 2024-25. This decision will benefit more than 7 crore PF contributors. However, given the many reforms being done in EPFO, it is expected that the interest rate on PF may increase in the next financial year. In this regard, a member in Parliament had asked the Ministry of Labor whether EPFO ​​is considering increasing the interest rate.

In response to this, the Ministry of Labor and Employment told the Lok Sabha that interest on PF accounts is calculated on the basis of the running balance of each month and this interest is added to the accounts on the last day of the financial year. The ministry also clarified that the interest rate is determined based on the earnings—like interest and dividends—from investments made by EPF funds in government securities, debt instruments, equity, etc.