EPFO UPI Rule: If you work in the government or private sector and your Provident Fund (PF) is deducted every month, then there is good news for you. The Employees’ Provident Fund Organization (EPFO) has taken a big step to speed up the process of PF claims. EPFO is now going to link UPI to its system, which will make claiming PF even easier and faster. This step will provide great relief to PF account holders.
What will be the new system?
So far PF claims up to Rs 1 lakh were automated, but now this process will be even faster through UPI. In the new system of EPFO, EPF account holders will be able to link their EPFO account through their UPI apps (like PhonePe, Google Pay, Paytm). After this, the claim process will not only be faster, but if the members are eligible, the claim money will be transferred to their bank account immediately. Currently, PF claim processing takes 3 days, but through UPI, this process will now be completed in a few minutes.
When will the new system start?
Labor and Employment Secretary Sumita Dawra said that UPI will be fully integrated into the EPFO system by the end of May 2025. About 7.5 crore active EPF members will benefit from this change. Now, claims related to PF accounts can be transferred quickly and easily, making this facility even more beneficial for PF account holders.
Improvement in database and pension system
EPFO has made the biggest reform in its history by creating a centralized database, which will be completely stable in the next 2-3 weeks. Pensioners will also get the benefit of this. Now, 78 lakh pensioners will be able to get their pension from any bank, whereas earlier, pensions could be received from only a few banks. Along with this, a centralized pension system has also been implemented on the advice of RBI, which will improve the pension process.
New schemes related to employment
The government has made a big increase in the budget for new schemes related to employment. The budget of Employment Linked Incentive (ELI) scheme has now been increased from Rs 10,000 crore to Rs 20,000 crore. This scheme will benefit the youth doing jobs, existing employees and platform workers. Additionally, free health insurance will also be given to platform workers under the online PMJAY scheme.
When will you get the benefit of UPI?
EPFO has prepared this proposal in consultation with the National Payments Corporation of India (NPCI). This facility will be fully launched after UPI frontend testing by the end of May 2025. Earlier it was being discussed that PF money can be withdrawn from ATM, but now if the PF account is directly linked to UPI, then the need for ATM will probably end.
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