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EPF Withdrawals via UPI Soon: Direct Transfers in 3 Steps

EPFO to launch UPI withdrawals, simplifying access to funds for members.

May 21
3 min read
EPF Withdrawals via UPI Soon: Direct Transfers in 3 Steps

Top Summary

  • What happened: EPFO is set to launch a UPI payment gateway for EPF withdrawals, with testing already completed.
  • Why it matters: This will provide quicker and easier access to funds for over seven crore EPFO members.
  • What changes for people: Members can directly transfer funds to their bank accounts using UPI, streamlining the withdrawal process.
  • Who is affected: All EPFO subscribers will benefit from this enhanced service delivery.

UPI-Based EPF Withdrawals Imminent

Employees' Provident Fund Organisation (EPFO) is gearing up to launch UPI-based withdrawals. Labour Minister Mansukh Mandaviya announced that testing is complete.

The move aims to improve service delivery for its large subscriber base.

"We have completed the testing of the facility where members can withdraw EPF through the use of the UPI payment gateway," said Mandaviya.

 

How to Withdraw via UPI: 3 Easy Steps

Subscribers will be able to transfer their eligible EPF balance directly into their linked bank accounts.

Here's how it will work:

  • Members will see the EPF balance available for withdrawal.
  • They will use their linked UPI PIN for secure transaction completion.
  • Funds will be credited to their bank accounts for digital payments or ATM cash withdrawals.

The labour ministry is also working on a plan to allow partial EPF withdrawals via UPI, freezing a certain proportion of the funds.

Current Withdrawal Process

Currently, EPFO members must file withdrawal claims, which can be time-consuming. The auto-settlement mode, allows for electronic settlement within three days.

The auto-settlement limit has been increased from ₹1 lakh to ₹5 lakh. This enables quicker access to funds for reasons like illness, education, marriage, and housing.

EPFO on WhatsApp

EPFO also plans to enhance communication through WhatsApp. Members can initiate conversations by sending 'Hello' to EPFO's verified WhatsApp number.

The registered WhatsApp number will have a green tick mark for verification. This allows members to receive important updates and access services faster.

Global Investing Insights from Mint Horizons

A Mint Horizons masterclass in Gurgaon discussed global investment strategies. Experts emphasized the need for global diversification amid geopolitical shifts.

Arun Singh, former Indian Ambassador, highlighted the "weaponisation" of economic equities. He advised investors to brace for change and consider diverse markets like Europe.

Diversification and Domestic Resilience

Neil Borate noted that Indian portfolios are heavily domestic, missing out on global growth. Subho Moulik suggested direct access to US markets for innovation themes like AI.

Dhirendra Kumar pointed out the resilience of the Indian market due to SIP inflows exceeding ₹33,000 crore monthly. He cautioned against ignoring global opportunities.

What to Watch Next

Keep an eye out for the official launch date of the EPFO's UPI withdrawal facility. Also, monitor for updates on the WhatsApp communication channel implementation and the proposed partial withdrawal scheme.