EPFO Begins Testing UPI-Based EPF Withdrawals; Facility Likely to Launch by December 2026

The Employees’ Provident Fund Organisation (EPFO) has started testing a system that will allow subscribers to withdraw provident fund money through the Unified Payments Interface (UPI), according to The Moneycontrol news report. 

The facility is expected to be formally launched by the end of December. Once introduced, EPFO subscribers will be able to use UPI to access eligible provident fund withdrawals instead of waiting for the amount to be transferred to a bank account after the claim process. 

UAN Portal to Be Linked With UPI 

At present, EPFO members submit withdrawal claims online through the Universal Account Number (UAN) portal. After the claim is processed, the approved amount is transferred to the subscriber’s bank account. 

Under the proposed system, the UAN portal will be linked with subscribers’ UPI accounts. EPFO has around 300 million subscribers, making the planned facility applicable to a large member base. 

New App Also Under Development 

EPFO is also expected to introduce a new app linked to subscribers’ bank accounts. The app will be connected with BHIM and other UPI applications, according to the report. 

The UPI withdrawal system is expected to operate within the existing withdrawal rules. Subscribers will be able to withdraw up to 75% of their EPFO balance, subject to the applicable conditions. 

25% of Balance Must Remain 

Under the current rules, members can withdraw up to 75% of their eligible accumulated EPF balance for certain short-term requirements. These include expenses related to education, marriage, and housing. 

At least 25% of the balance must remain in the EPF account. This portion continues to earn tax-free interest. 

EPFO Corpus Nears ₹26 Lakh Crore 

As per the report, EPFO’s total corpus is close to ₹26 lakh crore. The number of active subscribers, referring to members who are currently contributing, is around 7.5 crore. 

The proposed UPI facility is now under testing with banks, with the formal launch expected by the end of December. The withdrawal limit and other conditions will continue to apply under the existing rules. 

Read More: West Bengal Government Approves 14,454 Jobs and ₹50,000 Higher Education Assistance Scheme! 

Conclusion 

UPI-based EPF withdrawals are currently being tested by EPFO, with the official launch expected by year-end and withdrawal limits subject to existing rules. 

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