EPFO members can withdraw money via UPI from April
What's the story
Employees' Provident Fund Organization (EPFO) subscribers will soon be able to withdraw their provident fund (EPF) directly into their bank accounts through the Unified Payment Interface (UPI). The new system is expected to be implemented by April this year. A top source in the labor ministry told PTI that a certain proportion of the EPF will be frozen while a large chunk would be available for withdrawal via UPI.
Transaction security
UPI pin to ensure secure transactions
The new system will allow subscribers to view their eligible EPF balance for transfer into their linked bank accounts. They can use their linked UPI pin to complete the transaction, ensuring a secure transfer of money into their bank accounts. Once the money is transferred, members can use it as they wish, be it making electronic payments or withdrawing cash through debit cards at ATMs.
System implementation
EPFO working to resolve software glitches
The source also revealed that the EPFO is working to resolve software glitches for the smooth implementation of this system. The initiative will benefit around eight crore members who currently have to apply for withdrawal claims to access their EPF money, a time-consuming process. The new system will simplify this by allowing direct withdrawals through UPI, reducing manual intervention and expediting transactions.
Claim settlement
Auto-settlement mode for withdrawal claims
Under the auto-settlement mode, withdrawal claims are settled electronically without manual intervention within three days of filing the application form. The limit of this mode has already been raised to ₹5 lakh from the existing ₹1 lakh. This will enable a large number of EPFO members to access their EPF money within three days for illness, education, marriage, and housing purposes.
Service enhancement
Plan to enhance member services
The EPFO is also working to improve its services, in line with banking standards. Earlier in October 2025, the Central Board of Trustees (CBT) approved simplification and liberalization of EPF partial withdrawal provisions. Now, members can withdraw up to 100% of the eligible balance in the Provident Fund, including employee and employer share. A provision has been made for earmarking 25% of contributions as Minimum Balance to be maintained by members at all times.