EPFO Members Can Now Withdraw via UPI Starting April

Every EPFO member will be able to avail the UPI facility through the BHIM app, with the existing guardrails for UPI transactions to apply as it is. The facility is especially expected to help blue-collared workers in the EPFO ambit who may not otherwise be able to avail the withdrawal process through the online portal. “Initially, a cap of Rs 25,000 per transaction has been proposed as anything instantaneous is prone to misuse. The users will also need to be careful with withdrawals with respect to the permissible frequency of withdrawals. Even though we are giving good flexibility now for withdrawals, the frequency has been defined for the three categories in a year. If a member withdraws the amount very quickly in 2-3 transactions, and though he/she may not have availed the full limit in amount terms, the eligible frequency may get exhausted,” the official said. The facility would have seen light of the day earlier than this but the notification of Labour Codes in November and the easing of withdrawal norms in October had to be factored in during the software development phase of the proposed UPI facility, the official explained. “The withdrawal rules were changed, so the 75% and 25% balance bit and the changes in Social Security Code had to be all dovetailed into this. The work is now in final stages, and should be available before April,” the official said. The proposed rollout of the new facility comes after the EPFO announced liberalising of its withdrawal norms after its Board meeting in October last year, streamlining the withdrawal categories from 13 to three — essential needs (illness, education, marriage); housing needs; and special circumstances. It, however, introduced two other significant changes regarding minimum balance and premature final settlement in cases such as withdrawal at the time of unemployment. The members can withdraw 75% of their corpus and would be required to earmark 25% of the contributions in their accounts as the minimum balance at all times. Withdrawal limits for education or illness were made more flexible: partial drawals can now be made 10 times for education during the membership and 5 for marriage, as against the existing limit of 3 partial withdrawals for marriage and education combined. Under illness and ‘special circumstances’ categories, withdrawals will be allowed 3 times and 2 times every financial year. Story continues below this ad