EPFO Mobile App: You can withdraw PF money via UPI from April; know how

EPFO Mobile App: The EPFO fund body's retirement subscribers will be able to withdraw their Employee Provident Fund (EPF) directly into their bank accounts via the UPI payment gateway using its new mobile application, which is set to launch this year.

A new mobile application for EPFO will be launched in April this year, the source told PTI.

In a recent update, the Labour Ministry is working on a project where a certain portion of the EPF (Employees' Provident Fund) will be frozen, and the larger portion can be withdrawn from their bank accounts using the Unified Payments Interface (UPI), the source told PTI.

EPFO Mobile App: Key benefits and how it will work?

The Employees' Provident Fund Organisation (EPFO) will launch a new mobile phone application that will allow members to withdraw their EPF money using the UPI gateway and also avail other services such as checking their passbook balance, according to PTI.

Currently, members use either the Universal Account Number (UAN) portal or the UMANG app to access their EPF account and avail of its services.

These services will be available on both platforms, while the new dedicated app will further improve the accessibility and delivery of services for EPFO subscribers, according to reports.

Subscribers will be able to view their eligible EPF balance available for transfer to their linked bank account in the mobile application.

They will be allowed to use their linked UPI PIN to complete the transaction, ensuring the secure transfer of funds to their bank account.

Presently, EPFO is also conducting trials using 100 dummy accounts to improve the performance of this service and resolve any technical issues that may arise.

EPFO Mobile App: Difference between auto-settlement and UPI

Under the auto-settlement mode, withdrawal claims are settled electronically within three days of submitting the application form, without any manual intervention.

The limit for this auto-settlement mode has already been increased from the existing Rs 1 lakh to Rs 5 lakh. This makes it easier for most EPFO members to withdraw their EPF funds within three days for purposes such as illness, education, marriage, and house construction.

This makes it easier for a large number of EPFO members to withdraw their EPF money within three days for purposes such as illness, education, marriage, and house construction. The EPFO, which has approximately 80 million members, first introduced the online auto-settlement of advance claims during the COVID-19 pandemic to provide quick relief to those facing financial difficulties.

However, all members have to file claims to access their own EPF.

This new system is being developed to avoid this time-consuming process and reduce the burden on EPFO, as more than 5 crore claims, mostly for EPF withdrawals, are settled every year.

Sources told PTI that the EPFO cannot allow its members to withdraw money directly from their EPF accounts because the organisation does not have a banking licence.

However, sources added that the government wants to improve EPFO's services to bring them on par with those offered by banks.