EPFO to Introduce UPI & ATM Withdrawals for Provident Fund, Expand Pension Access

The Employees’ Provident Fund Organisation (EPFO) is gearing up to introduce Unified Payments Interface (UPI) for claim withdrawals by the end of May, aiming to make fund access faster and more efficient. This move is part of EPFO’s broader digital transformation strategy to streamline provident fund (PF) transactions and reduce claim processing time.

Labour and Employment Secretary Sumita Dawra, in a recent announcement, confirmed that EPFO, which has 7.5 crore active members, has already automated claim settlements up to ₹1 lakh, introduced self-correction mechanisms, and eliminated redundant procedures, reducing claim processing time to just three days.

UPI Integration: A Game Changer for EPFO Claim Withdrawals

For the first time, Employees’ Provident Fund Organisation (EPFO) has developed a centralized database, setting the stage for UPI integration.

“We have received suggestions from the National Payments Corporation of India (NPCI) and submitted a proposal to EPFO. Once testing is completed, we expect the UPI-based system to go live by May-end. This will allow members to view their EPFO accounts directly in the UPI interface and make auto-claims. If eligible, approvals will be instant, ensuring quick credit to their accounts,” said Dawra.

The stabilization of this centralized database is expected to take two to three weeks, after which the UPI frontend will be officially launched. This will provide members with a seamless and faster withdrawal experience, ensuring quicker fund transfers without the need for extensive paperwork.

Expanded Pension Access & Employment Linked Incentives

In addition to enabling UPI-based provident fund withdrawals, EPFO is implementing major pension reforms to enhance accessibility for its 78 lakh pensioners.

✅ Centralized Pension System – Pensioners will now be able to receive benefits from any bank, eliminating restrictions imposed by designated financial institutions.

✅ Employment Linked Incentive (ELI) Scheme – To boost employment and social security benefits, the funding for ELI has been doubled from ₹10,000 crore to ₹20,000 crore.

✅ The scheme will now extend its benefits to first-time employees, current workforce members, and gig economy workers, providing them with enhanced health coverage under the PM Jan Arogya Yojana (PMJAY).

How These Reforms Will Benefit EPFO Members?

These new measures represent a major leap forward in EPFO’s efforts to digitize and enhance accessibility:

Faster and Easier Fund Withdrawals – With UPI integration, members can make instant withdrawals directly through their linked UPI accounts.

Greater Pension Flexibility – Pensioners can now access their monthly pension from any bank, removing previous location-based restrictions.

Stronger Employment Benefits – With increased funding, more employees will benefit from government-backed financial and healthcare incentives.

Reduced Processing Time – Automated systems will eliminate delays, ensuring claims are settled within three days.

About Employees’ Provident Fund Organisation (EPFO)

The Employees’ Provident Fund Organisation (EPFO) is India's largest social security organization, operating under the Ministry of Labour and Employment, Government of India. Established in 1952, EPFO manages the Employees' Provident Fund (EPF), Employees' Pension Scheme (EPS), and Employees' Deposit Linked Insurance (EDLI) for millions of workers across the country.

Key Functions of EPFO

• Retirement Savings: Manages provident fund contributions from employees and employers, ensuring financial security post-retirement.

• Pension Distribution: Administers pension benefits for eligible members under the Employees’ Pension Scheme (EPS).

• Insurance Coverage: Provides life insurance benefits under the Employees' Deposit Linked Insurance (EDLI) Scheme.

• Digital Services: Offers online claim settlements, UAN-based access, and now integrating UPI for seamless withdrawals.

With over 27 crore accounts and 7.5 crore active members, EPFO plays a crucial role in safeguarding the financial well-being of India's workforce.

Conclusion

With UPI-enabled fund withdrawals, expanded pension access, and enhanced employment incentives, EPFO is taking a major step towards digital transformation. These new reforms will simplify PF transactions, ensure instant claim approvals, and provide better financial security to pensioners and workers alike.

As the official rollout of these changes is expected by May-end, EPFO members can look forward to a more convenient and efficient financial management system.