Opinion
Mint Quick Edit | Get set for UPI access to one’s provident fund
Summary
- PF integration with India’s most popular bank-transfer platform would come as big relief for the retirement scheme’s subscribers. It’s their own saved-up money and they need far easier access to it.
Come the end of May or June, India’s provident fund (PF) subscribers will be able to withdraw money from their retirement kitties through UPI or ATMs, according to labour and employment secretary Sumita Dawra.
Once the integration of the UPI platform with the PF database is completed, subscribers will be able to view their PF balances on a UPI app and also withdraw up to ₹1 lakh instantly, with transfers credited to their chosen accounts.
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While Dawra offered no details on aspects such as whether ₹1 lakh withdrawals would have an annual limit and if some reason will need to be cited and substantiated, the broad idea of granting people easier access to their saved-up funds is welcome.
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Given the difficulties subscribers face in withdrawing PF money, such a facility could not come a moment too soon. To be sure, the Employees’ Provident Fund Organisation (EPFO) has taken numerous steps that have reduced the time taken to claim funds to a few days from months.
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But high rejection rates, often caused by systemic glitches, have resulted in much frustration. Liberalized access to PF balances, if it works smoothly, would be a relief for millions of citizens.
