New Delhi: The EPFO has made a major announcement regarding PF withdrawals. Employees who are EPF (Employee’s Provident Fund) subscribers will no longer have to wait for days to withdraw money from their EPF account. The organisation claims that after the new system is implemented, most PF claims will be settled within 24 to 48 hours, and in many cases, the same day. Additionally, the EPFO will soon introduce the facility of sending PF funds directly to bank accounts via UPI.
24-48 hours
The Employees’ Provident Fund Organisation (EPFO) has taken a major step towards making the PF withdrawal process faster than ever before. Speaking at the Global Industrial Relations Summit in New Delhi, EPFO Central Provident Fund Commissioner (CPFC) Ramesh Krishnamurthy said the organisation aims to settle new PF claims for members on the same day or within a maximum of 24 to 48 hours. He added that the EPFO has settled almost all pending claims and now, under the new auto-settlement system, about 90 percent of claims are being processed without any delay.
Earlier 7 to 10 working days
Earlier EPF subscribers had to wait for days to get their funds in their account. After filing withdrawal claim online with the EPFO, and even after completing KYC, the claim typically took seven to ten working days to be processed. However, with the new system in place, employees will no longer have to wait long for their funds when they need them. This will make withdrawing PF for medical emergencies, education, home purchases, or other essential expenses much easier and faster than before.
EPF payment facility via UPI
EPFO has also announced that within the next month, EPF claims will be paid directly to UPI-linked bank accounts through the BHIM app. This means that as soon as a claim is approved, the amount will be directly credited to the member’s UPI-linked bank account. This will speed up the banking process and reduce payment delays. This facility is also considered a major step towards promoting digital payments.
Interest rate on EPF
When asked about raising the current 8.25% interest rate on EPF, Ramesh Krishnamurthy said that it would be premature to comment on this matter. He added that as of July 3, the EPFO had simultaneously deposited approximately Rs 1.44 lakh crore in interest at the rate of 8.25% to more than 34 crore accounts of subscribers, which is a significant achievement for the organisation.
EPFO services will become smoother
The EPFO says that in the future, the organisation’s focus will no longer be limited to claim settlement. Compliance processes for employers will be simplified, and more digital and faster services will be provided to members. These reforms aim to make the EPFO a more reliable and modern social security institution for both employees and employers. With the new system in place, millions of employees are expected to be relieved of the previously lengthy process and wait times for EPF withdrawals.
