Last Updated:
EPF UPI Withdrawal: The new facility is expected to be rolled out by April this year, allowing members to access their provident fund balances through a UPI payment gateway.
EPFO UPI Withdrawal April.
In an effort to ease living for salaried employees, subscribers of the Employees’ Provident Fund will soon be able to withdraw their EPF money directly into their bank accounts using the Unified Payment Interface (UPI), doing away with the time-consuming claim-filing process.
According to a PTI report citing a top source, the new facility is expected to be rolled out by April this year, allowing members to access their provident fund balances through a UPI payment gateway.
According to the report, the labour ministry is working on a system under which a certain portion of the EPF balance will be frozen, while a substantial part will be made available for withdrawal directly into members’ bank accounts using UPI. The subscribers will be able to see the eligible EPF balance available for transferring into their seeded bank accounts.
Explaining how the system will work, the source told PTI that members will be allowed to use their linked UPI PIN to complete transactions, ensuring a secure transfer of money. Once credited to bank accounts, the funds can be freely used for digital payments or withdrawn through ATMs using debit cards.
The source said the Employees’ Provident Fund Organisation is currently resolving software-related issues to ensure smooth implementation of the UPI-based withdrawal system, which is expected to benefit nearly eight crore EPFO members.
At present, EPFO subscribers are required to file withdrawal claims to access their own provident fund money, a process many members find time-consuming. While EPFO has introduced an auto-settlement mode, under which claims are processed electronically within three days, members still need to submit applications.
The limit for auto-settlement of claims has already been increased to Rs 5 lakh from Rs 1 lakh, enabling faster access to funds for purposes such as illness, education, marriage and housing. EPFO had first introduced online auto-settlement of advance claims during the COVID-19 pandemic to provide quick financial assistance to members facing distress.
However, despite these reforms, more than five crore EPF claims, mostly withdrawal-related, are settled every year, putting a heavy administrative burden on the organisation. The new UPI-based system is being developed to reduce this load and eliminate the need for claim filing altogether.
The source clarified that EPFO cannot allow direct withdrawals from EPF accounts in the same way banks do, as the body does not hold a banking licence. “However, the government wants to improve the services of the EPFO at par with banks,” the source said.
Earlier, in October 2025, EPFO’s apex decision-making body, the Central Board of Trustees, approved a sweeping simplification and liberalisation of partial withdrawal rules. These changes will be notified shortly after the meeting minutes were approved by Union Labour Minister Mansukh Mandaviya, the source added.
Under the revamped framework, 13 complex withdrawal provisions have been merged into a single streamlined rule, classified into three broad categories — Essential Needs (such as illness, education and marriage), Housing Needs, and Special Circumstances. Members will now be able to withdraw up to 100 per cent of the eligible provident fund balance, including both employee and employer contributions.
To ensure long-term retirement security, EPFO has also provided for maintaining 25 per cent of total contributions as a minimum balance at all times. This will allow members to continue earning EPFO’s attractive interest rate, currently 8.25 per cent per annum, along with compounding benefits to build a robust retirement corpus.
Officials said the rationalisation of scheme provisions, combined with greater flexibility and zero documentation requirements, is expected to pave the way for 100 per cent auto-settlement of partial withdrawal claims, significantly enhancing ease of living for EPF members.
The move marks one of the most significant digital upgrades in EPFO’s history, effectively bringing provident fund access closer to the convenience and speed of modern banking, without compromising retirement savings.
Click here to add News18 as your preferred news source on Google.
January 17, 2026, 10:07 IST
Read More
