There's great news for Employee Provident Fund (EPFO) account holders. The process of withdrawing money from your PF account will soon become easier and faster. The EPFO ​​has begun testing the ability to withdraw PF funds through UPI. It's reportedly ongoing with some banks. This feature is expected to launch by the end of December, and a final launch date has not yet been announced.

PF can be withdrawn through UPI.
Currently, to withdraw money from PF, an employee has to make an online claim through the UAN portal. After this claim is approved, the PF amount is deposited in the bank account of the concerned employee. Only then can that money be used. However, this new facility can make this entire process easier. EPFO ​​​​plans to link the UAN portal with the member's UPI account. This is likely to speed up the process of PF-related transactions and withdrawals. Apart from this, EPFO ​​​​may also launch a new app. This app is likely to be linked to the bank account and can also be linked to other UPI apps including BHIM.

Can 75% of the amount be withdrawn?

According to the rules, up to 75% of the eligible PF balance can be withdrawn through UPI. The remaining 25% will be kept in the PF account. This amount can be withdrawn for specific reasons, such as education, marriage, or household expenses. The remaining amount in the account will continue to earn tax-free interest.

PF Salary Limit 25,000
Meanwhile, the government has decided to increase the salary limit for PF from Rs 15,000 to Rs 25,000. This limit has been increased after 12 years. This change could bring approximately 5.1 million more employees under the mandatory PF coverage. Currently, the EPFO ​​has approximately 300 million members, of which approximately 75 million members are reported to be making regular contributions. The total fund size of the EPFO ​​is estimated to be approximately Rs 26 lakh crore.

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