EPFO will allow its 8 crore members to withdraw PF through UPI by April 2026. Members can withdraw the eligible amount directly into their bank accounts using the UPI PIN ...read more

The Employees' Provident Fund Organisation (EPFO) is preparing to take important steps for its 8 crore members.

By April 2026, its members will be able to transfer the eligible amount from their Employees Provident Fund (EPF) directly to their bank account through UPI.

The rules for withdrawing PF will change.

According to reports, in the new system, PF members will be able to complete secure transactions using their UPI PIN.

A minimum portion (25 per cent) of the account will be reserved so that members can continue to benefit from the current 8.25 per cent interest rate and compound interest.

The remaining money will be instantly credited to the bank account, after which it can be used through digital payment, ATM cash withdrawal or debit card.

EPFO engaged in removing the flaws

EPFO is currently working expeditiously to address technical challenges and software glitches to ensure smooth implementation of the system.

Currently, members have to file a claim for withdrawals, which is a time-consuming process. Automatic settlement also takes three days. The new system will speed up this process.

Auto-settlement service launched

The EPFO ​​introduced online auto-settlement to provide immediate assistance to those facing financial distress during the COVID-19 pandemic. It is worth noting that over 50 million claims are settled each year, most of which are related to withdrawals.

According to reports, the EPFO ​​cannot allow its members to withdraw funds directly from their EPF accounts because it does not have a banking license. However, the government is pushing to make EPFO ​​services more convenient and more like banks.

Rules simplified in October

In October 2025, the EPFO's Central Board of Trustees approved simplification of partial withdrawal provisions. The earlier 13 conditions have been reduced to three main categories.

1. Essential needs (illness, education, marriage)
2. Housing needs
3. Special circumstances

Members will now be able to withdraw up to 100% of their eligible balance, while the minimum amount remains protected. The withdrawal limit has also been increased to ₹5 lakh.

PC:Jagran