EPFO Withdrawals via UPI: Testing Begins; Find Out When the Facility Launches
The Employees' Provident Fund Organisation (EPFO) is set to introduce a new feature allowing EPF withdrawals via UPI. Testing for this facility is already underway, and it is expected to be available for use by the end of the year.
The EPFO has been consistently updating its services to enhance convenience for employees. As part of this ongoing effort, the organization is preparing to launch a new facility that will enable direct EPF withdrawals using UPI. A recent update from the organization has shed light on when this service will go live.
The EPFO has initiated testing for this facility in collaboration with banks. A senior government official, speaking to *Moneycontrol*, indicated that the service could be formally launched by the end of December.
How will the new facility work?
Under this new facility, employees will be able to withdraw up to 75% of their EPF balance, subject to applicable terms and conditions. Current regulations require a minimum of 25% of the funds to remain in the employee's EPF account.
For what purposes can the balance be withdrawn?
Funds can be withdrawn via UPI for expenses such as education, weddings, home purchases, or home repairs. Employees can withdraw up to 75% of their EPF balance for these purposes. The remaining 25% in the account will continue to earn tax-free interest and remain secure for the future.
Integration with apps
The EPFO is also preparing to launch a new app. This app is expected to integrate with employees' bank accounts as well as BHIM and other UPI-enabled applications. Once launched, this facility is expected to make the EPF withdrawal process faster and easier than before.
How is EPF money currently accessed?
At present, employees must file an online claim via the UAN portal to withdraw money from their EPF. Once the claim is approved, the EPFO transfers the funds to the employee's bank account—a process that takes some time. However, the new system will simplify this procedure; the EPFO's UAN portal will be linked to the employee's UPI account, enabling direct withdrawals via UPI.
