EPFO withdrawals will possible through UPI within 3 months

Good News from EPFO, withdrawals will possible through UPI within 3 months.

In financial year 2025 so far, EPFO has settled claims of over 50 million members, which is the highest ever, and settled more than Rs 2.05 lakh crore.

The government is working processing of Employees Provident Fund (EPFO) claims by members on United Payment Interface (UPI) mode, for smooth transfer of funds.

According to an official source, the EPFO is going to implement the plan, and discussions with the National Payment Corporation of India (NPCI) to implement the feature on UPI-platforms in the next 2-3 months.

The collaboration with UPI is reform by the EPFO to enhance its efficiency and increase settlement for his 7.4 million members.

Sources saying once the EPF is linked to UPI, members will easily be able to withdraw their claim amount through a digital wallet.

In collaboration with commercial banks and the Reserve Bank of India (RBI), the labour ministry implement EPFO digital systems to simplify withdrawals and improve user experience.

The implementation of UPI technology will enable members in remote areas can take benefit of transaction which supports the Pradhan Mantri Jan Dhan Yojana. said Rohitaashv Sinha, partner, King Stubb & Kasiva. It will also enhance EPFO capability to fulfill its statutory duties while improving operational efficiency, he added.

In the past six-seven months, to ensure ease of living, the EPFO has undertaken significant reforms aimed at improving pension services. Settlement of claim processing for provident fund (PF), and enhancing information technology (IT) systems.

These reforms led to improvements in service delivery for millions of EPF members and pensioners, with more improvements to follow in the near future, labour secretary Sumita Dawra told FE recently.

Also, auto claim settlements, processed within three days, doubled to 18.7 million in FY25, compared to 8.95 million processed during FY24.

Labour & Employment Minister Mansukh Mandaviya had said, since implementation of a simplified transfer claim application, only 8% of transfer claims now require member and employer attestation.  48% of claims are submitted directly by members without employer intervention, while 44% of transfer requests are generated automatically.

Akhil Chandna, partner, Grant Thornton Bharat said: While UPI integration promises faster and more accessible PF withdrawals, factors such as transaction limits, security, and regulatory compliance remain key considerations.