Kolkata: Come June and millions of Employees’ Provident Fund Organisation (EPFO) subscribers as well as EPFO pensioners will be able to withdraw funds from the EPF through the UPI route. It will be a digital leap that will create unprecedented convenience for the users to withdraw funds with a few touches of the button. Now one need at least two-three days to get cash out from the account.
Labour and Employment Secretary Sumita Dawra had said earlier that the UPI feature will become operational by June the latest. “This will benefit all members, as they will be able to view their EPFO accounts directly in the UPI interface and make auto-claims. The approval process will be instant if the consumer is eligible, ensuring quick credit to their accounts,” Dawra had told the media.
EPFO has about 7.5 crore members who maintain their PF accounts. All these contributors have a pension account called EPS (Employees Pension System). In case a member claims an amount from the EPF that is below or up to Rs 1 lakh, the process has been automated. By next month EPFO contributors will have the convenience of tapping into the fund through UPI. According to what the labour secretary said, EPFO and UPI are going through the last minute testing now in May.
EPFO money through ATM, UPI
Millions of EPFO subscribers are waiting for EPFO to take this digital leap. Let’s have a look at how the process might work out. EMFO members will use an EPF withdrawal card which will be linked to their Universal Account Number (UAN). This will allow them to access funds at ATMs. According to reports, the process will be quite similar to withdrawing cash from bank ATMs which require the PIN and the amount to withdraw to be punched in. The initial limit on withdrawal through ATMs is likely to be set at Rs 1 lakh.
In the case of withdrawal through UPI, it has been reported that EPFO subscribers will be able to withdraw funds through UPI apps. They can transfer the money to the bank accounts their UPI app is linked to.
Basic conditions for the process to work
Experts have pointed out that EPFO members need to have the following in place to benefit from the digitization drive:
Their Universal Account Number (UAN) must be activated
Mobile phone linked to UAN should be working
UAN should be linked with KYC documents such as Aadhaar, PAN, account number and IFSC
From next month one will be able to withdraw money in the Employee’s Provident Fund account through ATMs and UPI (United Payments Interface) that will lend the once-fuddy-duddy EPFO a modern digital avatar. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
