Employees’ Provident Fund Organisation (EPFO) is set to revolutionize the way its members access their provident fund (PF) accounts.
By the end of May 2025, EPFO will introduce a Unified Payments Interface (UPI)-based system and ATM withdrawals, enabling members to access their funds more conveniently and efficiently.
This initiative, approved by the Ministry of Labour and Employment, aligns with the government’s vision of digital transformation and ease of living.
Sumita Dawra, Secretary of the Ministry of Labour and Employment, highlighted the transformative potential of the new system.
Sumita mentioned “By May-end or June, members will experience a transformative change in accessing their provident funds.
“They will be able to view their PF account balance directly on UPI, instantly withdraw up to ₹1 lakh through an automated system, and choose their preferred bank account for transfers,” she stated.
Sumita also emphasized the alignment of these reforms with Prime Minister Narendra Modi’s vision of “ease of living” for employees and employers.
She noted that EPFO’s efforts to digitalize its processes have made significant strides in enhancing user experience and operational efficiency.
Key Features of the New System by EPFO
The new system will allow EPFO members to withdraw up to ₹1 lakh instantly through UPI or ATMs.
Members will also have the flexibility to choose their preferred bank accounts for fund transfers.
Additionally, they will be able to check their PF account balances directly through UPI apps, making the process more transparent and user-friendly.
The system is designed to significantly reduce transaction times.
At present, processing PF claims takes around 2–3 days. The new system intends to reduce this time to just minutes or hours.
This transformative change is expected to benefit millions of EPFO members across the country.
EPFO has broadened the scope of PF withdrawals to include funds for housing, education, and marriage, in addition to existing provisions for medical emergencies.
This expansion provides members with greater financial flexibility and addresses a wider range of needs.
Digital Transformation at EPFO
The introduction of UPI and ATM withdrawals is part of EPFO’s broader digital transformation strategy.
The organization has integrated over 120 databases to streamline claim processing, with 95% of claims now being automated.
These efforts have reduced claim processing times to just three days, with plans to further simplify the process.
EPFO’s digital initiatives also extend to pensioners.
Since December 2024, pensioners have been able to withdraw funds from any bank branch, eliminating geographical limitations.
These reforms reflect EPFO’s commitment to leveraging technology for improved service delivery.
Challenges and Future Prospects
Implementing these reforms is no small feat, given the scale of EPFO’s operations.
The organization handles a large network of over 7.5 crore active members. It also welcomes 10–12 lakh new members each month across 147 regional offices.
Despite these challenges, EPFO remains committed to improving accessibility and convenience for its members.
The introduction of UPI and ATM withdrawals is likely to set a benchmark for other government organizations.
It highlights the transformative power of digital advancements in public service delivery.
As the system rolls out, it is likely to inspire similar initiatives across various sectors.
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