If you work in the government or private sector and have a Provident Fund (PF) deduction every month, this update is important for you.
The Employees Provident Fund Organization (EPFO) is set to introduce UPI-based claim processing, making fund transfers faster and more convenient.
According to Labor and Employment Secretary Sumita Dawra, EPFO will integrate UPI into its system by May 2025.
This will benefit 7.5 crore active EPF members by enabling instant transfers to their PF accounts.
How Will the New System Work?
Currently, PF claims up to ₹1 lakh are processed automatically, but with UPI integration, they will be even faster.
Account holders will be able to link their EPFO accounts with UPI apps like PhonePe, Google Pay, and Paytm.
Additionally, an auto-claim facility will be introduced, ensuring eligible members receive their funds instantly. Right now, PF claims take about three days to process, but with UPI, the money will be transferred within minutes.
Database and Pension System Updates
EPFO has set up a centralized database, expected to stabilize within 2-3 weeks.
78 lakh pensioners can now receive their pension from any bank, instead of being limited to selected banks.
A centralized pension system has been introduced based on recommendations from the Reserve Bank of India (RBI).
Employment Schemes and UPI Launch Timeline
The budget for the Employment Linked Incentive (ELI) scheme has doubled from ₹10,000 crore to ₹20,000 crore.
This will benefit employed youth, existing employees, and platform workers.
Platform workers will also receive free health insurance under the PMJAY scheme.
EPFO, in partnership with the National Payments Corporation of India (NPCI), has drafted a proposal for UPI integration.
After frontend testing, the UPI service is expected to launch by May 2025.
Earlier, EPFO considered allowing PF withdrawals through ATMs, but with direct UPI integration, ATM withdrawals may no longer be necessary.
