The government is rapidly moving towards digitalization on the financial front. UPI is a living example of this. It has not only been successful in India. But many countries of the world have adopted it.
Now there are plans to use it for many other purposes as well. There is news that in the coming few months, you will also be able to withdraw EPFO money through UPI. Work is going on rapidly on this. It is expected that this system will start in the month of June. Let us also tell you what kind of planning has come out.
EPFO money will be withdrawn through UPI
Moving into the digital sector, the Employees’ Provident Fund Organisation (EPFO) is preparing to launch a UPI-based claim process, which will allow EPFO members to withdraw their provident fund instantly. Labor and Employment Secretary Sumita Dawra said that the move is being taken with the aim of improving efficiency and reducing transaction timing. In an interview to ANI, Dawra confirmed that the facility will go live by the end of May or June, which will be a major change in the way EPFO members access their savings.
Withdrawal upto Rs 1 lakh
He said that after doing the necessary testing, we are hoping to launch the UPI frontend for EPFO claims by the end of May. This will benefit all the members, as they will be able to view their EPFO account directly in the UPI interface and make auto-claims. If the subscriber is eligible, the approval process will be instant, which will get the money in their account immediately. Davra told ANI that members will be able to withdraw up to Rs 1 lakh instantly through the auto system and choose their preferred bank account for transfer.
A new revolution will come in EPFO
Currently, EPFO members have to go through a claim process that takes 2-3 days. After the UPI integration is launched, withdrawals are expected to be completed within a few hours or minutes. This facility is expected to revolutionise the Provident Fund process, just like UPI did for digital payments in India. Apart from faster withdrawals, EPFO has also expanded the scope of use of funds.
Members can now withdraw funds for housing, education and marriage in addition to the existing illness provisions, Dawra said. To make this change possible, EPFO has made a significant digital transformation. More than 120 databases have been integrated to streamline the claim process and 95 per cent of claims are already automated. The aim is to further simplify the process, reducing paperwork and delays.
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