New EPFO app to allow UPI withdrawals from April: Report

The Employees' Provident Fund Organisation (EPFO) will soon allow its subscribers to withdraw funds directly to their bank accounts through the Unified Payments Interface (UPI) payment gateway on its new mobile application to be launched in April this year, a PTI report said on Monday, February 9, quoting a top source. 

The labour ministry is working on a project where a part of EPF money will be frozen, and a larger portion of funds will be available for withdrawal to their bank accounts using the Unified Payments Interface (UPI), a PTI report quoted the source as saying.  

The source said that the Employees' Provident Fund Organisation (EPFO) will roll out a new phone application through which the members would be able to withdraw their EPF money through the UPI gateway, as well as avail other services like checking their passbook balance, the PTI report said. 

UAN portal and UMANG app

Presently, members can use the Universal Account Number (UAN) portal and the UMANG app to access their EPF accounts and avail these services. 

As per the PTI report quoting the source, these services will remain available on both platforms, and the new app will further improve EPFO’s accessibility and service delivery for members. 

Subscribers will be able to view the eligible balance in their EPF accounts available for transfer to their linked bank account in the mobile app, the source explained, adding that the members will be allowed to use their linked UPI PIN to complete the transaction. 

The EPFO is conducting trials using 100 dummy accounts to improve the efficacy of the service and remove any technical glitches, the source said, adding that the labour ministry could roll out the new app in April. 

Further, members currently have to apply for withdrawal by submitting claims to access their funds, making the process time-consuming. 

Auto-settlement of claims

The auto-settlement mode makes it easier for individuals to get their EPF money (up to ₹5 lakh) within three days of filing the application form. 

Under the auto-settlement mode, the withdrawal claims are settled electronically without manual intervention, facilitating a large number of EPFO members to access funds within three days for illness, education, marriage and housing purposes.

This online auto-settlement of advance claims was first introduced during the Covid-19 pandemic to provide quick assistance to members in need. However, members still have to file claims to access their EPF money. 

The new system with UPI withdrawals can make this time-consuming process more efficient, reducing the burden on the PF organisation, which receives over 5 crore claims every year. 

The EPFO can’t allow its members to withdraw money directly from the EPF accounts because the body does not have a banking licence, the source said, adding that the government wants to improve EPFO services to be on par with banks.