EPF withdrawals via UPI by April; likely initial cap Rs 25,000 per transaction, Pg15

Key Highlights:

• EPFO will allow UPI withdrawals via the BHIM app by April for its over 8 crore members.
• Initial withdrawal cap likely to be Rs 25,000 per transaction.
• System developed jointly by EPFO, C-DAC, NPCI, and SBI.
• Aims to help blue-collared workers access funds more easily.

Detailed Insights:

• The system will display the available balance, segregated into eligible withdrawal amount and minimum 25% balance.
• Existing UPI transaction guardrails will apply to these withdrawals.
• Labour Codes notification and easing of withdrawal norms in October caused delays in the facility's launch.
• Withdrawal frequency is defined for three categories per year, even with the new flexibility.

Key Concepts Involved:

• EPFO: A statutory body managing provident fund schemes for employees in India.
• UPI: An instant real-time payment system developed by NPCI for inter-bank transactions.
• BHIM App: A UPI-based mobile app facilitating digital transactions.