The Employees' Provident Fund Organisation (EPFO) is set to launch a new claim settlement mechanism through the BHIM app, allowing members to receive provident fund settlements directly into their UPI-linked bank accounts. Central Provident Fund Commissioner Ramesh Krishnamurthy announced on Friday, 31 July that the framework is expected to go live within one month.

How the New Mechanism Works

Under the proposed system, EPFO members will be able to submit claims directly through the BHIM app, with settlement amounts credited instantly to their UPI-linked accounts. The move is designed to eliminate friction in a process that has historically involved paperwork delays and manual verification steps.

'The claim settlement process we'll be introducing through the BHIM app — the claim will be settled to the UPI-linked bank account. So, this framework will also get implemented in maybe maximum a month from now,' Krishnamurthy said.

Part of a Broader Modernisation Drive

The BHIM-UPI integration is one piece of a larger reform agenda at EPFO, which has been pushing to deliver what Krishnamurthy described as 'world-class member services.' The organisation is also working on simplifying compliance processes for employers, with the Commissioner signalling that reforms to how employers interact with EPFO are in the pipeline.

'I've also assured all employers that we will be now focusing on compliance-related reforms. Hopefully, we will be introducing much more simplification in the way employers interact with EPFO,' he said.

Gig and Platform Workers on the Radar

Krishnamurthy also addressed the long-pending question of social security coverage for gig and platform workers. He noted that the Code on Social Security already provides for a dedicated scheme for gig, platform, and other unorganised workers. The government will announce both the scheme and the implementing agency once the framework is finalised — and EPFO could be that agency, depending on the decision.

This comes amid growing pressure on the Centre to extend formal social security nets to India's rapidly expanding gig economy, estimated to involve tens of millions of workers currently outside any retirement or insurance framework.

What This Means for Members and Employers

For EPFO's roughly 7 crore active members, faster digital claim settlement could significantly reduce the turnaround time that has been a persistent source of grievance. For employers, the promised compliance simplification could lower administrative burden and improve voluntary adherence.

'Net-net, the entire set of reforms will give employees and employers much more trust. They'll be able to have EPFO as a very reliable partner in their social security, and provide for their retirement,' Krishnamurthy stated.

With the BHIM-UPI rollout expected before the end of August 2025, all eyes will be on whether EPFO meets its own deadline — and whether the gig-worker framework follows close behind.