PF Withdrawals via UPI Coming Soon for EPFO Members
EPFO Members to Withdraw PF via UPI From April 2026: Employees’ Provident Fund Organisation (EPFO) members will soon be able to transfer money directly from their EPF accounts to their bank accounts using UPI. According to a senior source in the Ministry of Labour, the government will launch this facility in April 2026. This move will give EPFO bank-like services and help members withdraw money faster with fewer steps.
EPFO advises members to keep their UAN updated and regularly check the official EPFO portal or mobile app for updates. The Ministry of Labour is working on a system where EPFO will lock a small portion of the EPF balance, while members can withdraw the larger portion through UPI directly into their bank accounts.
How will the new system work?
Under this new system, EPFO will keep at least 25% of the EPF balance locked to protect retirement savings. Members can withdraw the remaining up to 75% of their EPF balance through UPI.
Members will be able to check their eligible withdrawal amount using UPI apps or ATMs. They can transfer money securely by entering their UPI PIN. After approval, EPFO will credit the money directly to the linked bank account. Members can then use the money for UPI payments, ATM withdrawals, or other needs.
Software updates and key benefits:
EPFO is upgrading its software to ensure smooth and error-free transactions. This new facility will benefit around 8 crore EPFO members.
At present, EPF withdrawals require filling out forms and waiting for approval. With the new auto-settlement system, EPFO will settle claims electronically within three days. The auto-settlement limit has also increased from ₹1 lakh to ₹5 lakh.
Why is this new system important?
The new system will help members access money quickly for important needs such as medical treatment, education, marriage, and house construction. During the COVID-19 pandemic, EPFO’s online auto-settlement system provided quick financial relief to many members.
EPFO processes over 5 crore claims every year. The UPI-based withdrawal system will reduce workload, save time, and improve efficiency.
New EPF withdrawal rules:
Members can withdraw 100% of the eligible EPF balance (employee and employer contributions combined). However, EPFO will always retain a minimum 25% of the balance in the account to secure retirement savings.
EPFO currently offers an interest rate of 8.25% per year, which helps members grow their retirement funds through compounding.
EPFO has also simplified its rules. It has reduced 13 complex withdrawal rules into three main categories:
-Essential needs (illness, education, marriage)
-Housing needs
-Special circumstances
