The Employees’ Provident Fund Organisation (EPFO) is set to incorporate the Unified Payments Interface (UPI) into its system with the aim of increasing the speed of transactions and improving the convenience of pensioners. Labour and Employment Secretary Sumita Dawra said that a proposal for UPI integration has been sent to the EPFO after recommendations from the National Payments Corporation of India (NPCI).
The UPI frontend for EPFO claims is expected to roll out by the end of May after the necessary testing is completed as stated by Dawra. This integration will enable pensioners and EPFO members to access their accounts directly through UPI and make auto-claims seamlessly. The approval process for claims will also become instant, and if the users meet the eligibility criteria, the credit will be made to their accounts directly.
The transition will require two to three weeks for EPFO’s centralized database to stabilize before UPI becomes operational. Dawra described additional EPFO improvements which include automated claims processing for amounts up to ₹1 lakh as well as self-correction features and elimination of unnecessary procedures. The changes have shortened the claim processing duration to three days.
The EPFO manages Provident Fund accounts and pension contributions for its 7.5 crore active members. Dawra explained that the RBI advised EPFO to establish pension disbursement through any bank. The pension payment system previously restricted payments to only a limited number of banks but the new centralized system now enables 78 lakh pensioners to receive funds through their preferred banking institution.
