The Employees’ Provident Fund Organisation (EPFO) has announced a major change that could make PF withdrawals much faster for millions of employees.
According to the EPFO, most PF withdrawal claims will soon be settled within 24 to 48 hours, and in many cases, the money could be credited on the same day.
The organisation has also revealed plans to introduce UPI-based PF payments, making the withdrawal process even quicker.
PF Claims to Be Processed Much Faster
Speaking at the Global Industrial Relations Summit in New Delhi, EPFO Central Provident Fund Commissioner (CPFC) Ramesh Krishnamurthy said the organisation is working to settle new PF claims on the same day or within a maximum of 24 to 48 hours.
He said the EPFO has already cleared almost all pending claims.
With the new auto-settlement system, around 90% of PF claims are now being processed automatically without unnecessary delays.
Earlier, Employees Had to Wait 7-10 Days
Until now, employees usually had to wait 7 to 10 working days after submitting an online PF withdrawal request, even if all KYC details were complete.
The new system will significantly reduce this waiting time.
It will especially help employees who need PF money urgently for medical treatment, education, buying a house, or other important expenses.
PF Money Will Soon Be Sent Through UPI
The EPFO has also announced another major upgrade. Within the next month, members may receive their PF amount directly into their UPI-linked bank accounts through the BHIM app.
Once a claim is approved, the money will be transferred directly to the linked bank account, reducing banking delays and making the payment process faster.
This move is also expected to strengthen digital payment services.
Will EPF Interest Rate Increase?
When asked whether the current 8.25% EPF interest rate would be increased, CPFC Ramesh Krishnamurthy said it is too early to comment on the matter.
He added that as of July 3, the EPFO had successfully credited around ₹1.44 lakh crore as interest at the 8.25% rate into more than 340 million member accounts, calling it a major achievement for the organisation.
More Digital Services Planned
The EPFO says its future plans go beyond faster claim settlements.
The organisation also wants to simplify compliance for employers and introduce more digital services for members.
These reforms aim to make EPFO services quicker, easier, and more reliable.
If the new system works as planned, millions of employees will no longer have to wait several days to access their PF savings when they need them most.