The Employees' Provident Fund Organisation (EPFO) has brought excellent news for salaried individuals. Previously, withdrawing PF funds required waiting for weeks and navigating a lengthy process. However, according to reports, a revolutionary change is set to take place from September under 'EPFO 3.0'; you will now be able to withdraw PF funds instantly via BHIM UPI, just like a standard digital payment.

What is the new UPI PF withdrawal system?
EPFO has implemented an 'Auto Settlement System' to expedite the processing of claims. Under this system, you will no longer have to wait 15 to 20 days for a claim to be settled. According to the new rules, over 90% of claims will be settled on the same day or within a maximum of 48 hours. BHIM/UPI integration is being introduced on the new EPFO ​​mobile app and portal, enabling employees to transfer funds directly to their accounts using their UPI IDs.

Why was there a delay in this facility? Account holders have been eagerly awaiting this much-anticipated UPI withdrawal service from the EPFO. It was initially claimed that the facility would launch in July. Subsequently, new launch dates were suggested for August, but the rollout had to be postponed at the last minute due to persistent technical glitches and server issues on the EPFO ​​portal.

New reports now suggest that the EPFO ​​has largely resolved these technical system issues. Consequently, there is a strong expectation that the facility will be officially rolled out in September, ending the long wait for millions of account holders.

**Starting with the BHIM App**
It is worth noting that this new system for withdrawing funds from PF accounts via UPI will debut with the Government of India's 'BHIM App'. Prioritizing transaction security, data privacy, and the reliability of the government payment gateway, the EPFO ​​has decided to integrate only BHIM UPI during the initial phase. Consideration may be given to including other UPI apps in the future only after a successful rollout.

**3 Key Rules for Withdrawal**
1. **75%-25% Formula:** Under the new rule, you can withdraw a maximum of 75% of your total accumulated corpus for immediate needs (such as medical or educational expenses). It is mandatory to retain 25% of the balance in the account to secure your retirement.

2. **Bank and UPI Alignment:** Your UPI ID must be linked to the same bank account registered under KYC with your EPFO ​​account or UAN. To prevent fraud, the transaction will be immediately rejected if there is a mismatch in the name or bank details.

3. **No Company Approval Required:** You do not need approval from your company or HR department for this online process; it is entirely... It will be automatic and paperless.