The Employees’ Provident Fund Organisation (EPFO) has announced a major change that will make PF withdrawals much faster for millions of employees.
Under the new system, most PF withdrawal claims are expected to be settled within 24 to 48 hours, and in many cases, even on the same day.
The EPFO has also revealed that it is preparing to introduce PF payments through UPI, making the withdrawal process quicker and more convenient.
PF Claims Will Be Processed Much Faster
Speaking at the Global Industrial Relations Summit in New Delhi, EPFO Central Provident Fund Commissioner (CPFC) Ramesh Krishnamurthy said the organisation is working to settle new PF claims on the same day or within a maximum of 24 to 48 hours.
According to him, almost all pending claims have already been cleared.
With the new auto-settlement system, nearly 90% of PF claims are now being processed automatically without unnecessary delays.
No More Waiting 7 to 10 Days
Earlier, employees usually had to wait 7 to 10 working days for their PF withdrawal claim to be processed, even after completing KYC and submitting the application online.
The new system is expected to reduce this waiting time significantly.
This will be especially helpful for employees who need money urgently for medical treatment, education, buying a house, or other important expenses.
EPFO to Introduce PF Payments Through UPI
Another major update is that EPFO plans to start sending PF money directly to UPI-linked bank accounts through the BHIM app within the next month.
Once a PF claim is approved, the amount will be credited directly to the member’s linked bank account.
This is expected to make payments faster and reduce delays caused by the traditional banking process.
The move is also seen as another step towards promoting digital payments in India.
Will the EPF Interest Rate Increase?
During the event, Ramesh Krishnamurthy was also asked whether the current 8.25% EPF interest rate would be increased.
He said it was too early to comment on the matter.
However, he shared that as of July 3, the EPFO had credited around ₹1.44 lakh crore in interest at the 8.25% rate to more than 340 million member accounts, calling it a major achievement for the organisation.
More Digital Services Planned
EPFO says its efforts will not stop at faster claim settlements.
In the coming months, the organisation plans to simplify compliance for employers and introduce more digital services for members.
These reforms aim to make EPFO more efficient, transparent, and user-friendly.
With faster claim processing and upcoming UPI-based payments, millions of employees could soon experience a much smoother and quicker PF withdrawal process.
