The withdrawal of money from a Provident Fund (PF) account had been very slow and tiring process for many employees in India.
EPFO 3.0: Faster, easier PF services coming soon
PF-related services were sometimes very complicated and slow due to long approval delays and website issues.
But the Employees’ Provident Fund Organisation (EPFO) is now planning a giant digital upgrade called EPFO 3.0, which is going to make the lives of the members significantly easier.
The objective is to render the services of the EPFO as smooth and quick as modern banking or UPI payments. This change is going to directly affect more than 8 crore active EPF members as the organization is taking a step closer to a more powerful and modern digital set up.
What is EPFO 3.0?
EPFO 3.0 is a total technological transformation of the EPFO system. Until now, EPFO has been operating on different modules and patches. Members have sometimes to deal with problems like slowdown of the portal, claim delays, or inability to use online services.
The new system is believed to be working like a core banking-style platform that is similar to what banks are utilizing. This is going to enable the EPFO to manage a large number of transactions simultaneously and process them in real time without a slowdown.
What is the reason behind EPFO upgrade?
The EPFO’s duties are predicted to increase significantly in the future, particularly due to the new labor regulations that are about to be implemented.
It’s possible that in addition to regular salaried workers, EPFO’s coverage will include others as well. Until now, the government had been restricting social security distribution only to the regulars; now it wishes to include gig workers, platform workers, and people from the unorganised sectors too. For that, EPFO needs to be equipped with a robust and resilient system that can timely support an even larger pool of members and workloads.
Currently, the EPFO is responsible for a fund of about ₹28 lakh crore, which is a massive sum. In view of the regular system being under heavy strain, EPFO 3.0 is being developed to continue to provide a seamless portal and faster service to the members.
The most significant change: Direct PF withdrawal via UPI
The UPI-based EPF withdrawal system is the most talked-about feature of EPFO 3.0. Once this becomes operational, the members will be allowed to withdraw PF money through UPI apps like BHIM or any other UPI platforms.
As per the new arrangement, the members will easily see their overall EPF balance, the portion they can take out, and the minimum balance requirement. Initially, per transaction the withdrawal limit according to the preliminary talks might be set at around ₹25,000.
When will EPFO 3.0 be released?
The UPI-linked PF withdrawal feature is projected to work completely by April 2026. Before that, EPFO will finish the remaining tasks from its current upgrade phase. Some UPI-based services might also start in a phased manner before the complete rollout.
In a nutshell, EPFO 3.0 translates to fewer delays, quicker PF services, smoother withdrawals, and a more user-friendly system for mobile devices. It will try to ease the pressure on the members and much closer to the digital banking experience that is now very easy.
