Hyderabad: There is a great news for PF account holders. Now they will not have to face much trouble to withdraw money from PF account. Rather, now they can withdraw PF money through UPI.
The government is working on making such a system. This facility can be started in the next two to three months.
According to sources, EPFO is taking this step for the convenience of its subscribers. With the integration of EPF with UPI, subscribers can withdraw money from their PF account through a digital wallet. The Labor Ministry is making changes in the digital systems of EPFO in collaboration with commercial banks and RBI. Its purpose is to simplify the withdrawal process and improve user experience. Experts say that this facility will be very convenient for members living in remote areas.
What is in the new system?
It is said that EPFO is taking such a step for its account holders. At the same time, the government is working on such a system in which EPFO account holders will be able to process their claims through UPI. As a result, the process of transferring funds will become easier as well as faster. According to the report of Financial Express, EPFO has prepared a blueprint for this and discussions are going on with the National Payment Corporation of India (NPCI).
How will subscribers get benefits?
- After the facility of withdrawing PF money through UPI is introduced, account holders will not have to face a long process to withdraw money from their PF account.
- This facility can prove to be very useful especially for account holders living in remote areas.
- Withdrawing money from PF account through digital wallet will become simple and safe.
Transformation into the digital system of EPFO
Transformation into the digital system of EPFO is being done in collaboration with the Ministry of Labor, commercial banks and RBI. Its purpose is to simplify the withdrawal process as well as improve user experience.
Changes in investment methods
EPFO is also preparing to change the method of investment. According to reports, investment in debt instruments can be reduced from 20 percent to 10 percent. For this, the Labor Ministry will take approval from the Finance Ministry. The main reason for this is the low returns and supply of public sector bonds.
- After this change, EPFO will be able to invest more in corporate bonds, which give higher returns.
- This proposal was approved in the meeting of the Central Board of Trustees of EPFO in November 2024.
- This change will affect the retirement savings of more than 7 crore EPFO account holders.
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