EPFO Introduces UPI for Swift Fund Access
The Employees’ Provident Fund Organisation (EPFO) is set to revolutionize its claim settlement process by integrating UPI payments for withdrawals up to Rs 1 lakh. Labour Secretary Sumita Dawra announced that this new feature will allow subscribers to access their funds more efficiently, with an expected rollout by the end of May or June. The initiative aims to streamline the process for various needs, including medical expenses and education.
Enhanced Claim Settlement Process
The EPFO is actively working to simplify its claim settlement procedures. Currently, the organization has reduced its validation checks from 27 to 18, with plans to further decrease them to just six. This streamlining has already led to a significant improvement in processing times, with auto settlements now completed in approximately three days, a stark contrast to the weeks it previously took. Last year, the number of settlements was around 90 lakh, but this fiscal year, it has surged to nearly 1.9 crore.
Dawra emphasized that the integration of UPI will allow members to view their EPFO accounts directly through the UPI interface. If a subscriber is eligible, the approval process will be instantaneous, ensuring that funds are credited to their accounts without delay. This enhancement is expected to provide a user experience akin to the convenience that UPI has brought to digital payments.
UPI Integration and Future Prospects
The upcoming UPI feature will enable EPFO subscribers to withdraw their provident funds via UPI and ATM facilities, a capability that is currently unavailable. This integration is anticipated to drastically reduce the processing time for withdrawals from the current 2-3 days to mere minutes or even hours. The EPFO has also established a centralized database, marking a significant milestone in its operational efficiency.
Dawra noted that the National Payments Corporation of India (NPCI) has provided the necessary framework for UPI integration. Following thorough testing, the EPFO plans to launch the UPI frontend for claims by the end of May. This initiative is designed to enhance the overall experience for EPFO members, making fund access as seamless as possible.
Benefits for EPFO Subscribers
The new auto settlement feature, capped at Rs 1 lakh, will allow subscribers to utilize their funds for various essential purposes, including medical expenses, housing advances, education, and marriage. This flexibility is expected to significantly benefit members, providing them with quick access to their savings when they need it most.
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