EPFO Plans UPI-based Withdrawals from April 2026

Members of the Employees’ Provident Fund Organisation (EPFO) may soon be able to withdraw part of their provident fund savings directly into their bank accounts through the Unified Payments Interface (UPI).  

According to a PTI report, the Union labour ministry is developing a system that could be introduced by April, covering nearly eight crore EPFO subscribers. 

Structure of the Proposed Withdrawal System 

Under the proposed arrangement, EPF accounts will be divided into 2 portions. One part of the total corpus will remain locked, while the remaining portion will be eligible for withdrawal.  

Members will be able to see the withdrawable balance and transfer it to their bank accounts already linked with EPFO records, using a UPI PIN for authentication. 

Access and Usage of Funds 

After the transfer, the amount will be credited directly to the member’s bank account. The funds can then be used for digital payments or withdrawn as cash through ATMs using debit cards.  

The system is designed to allow quicker access to funds while retaining controls required for retirement savings. 

Why the Change is Being Considered 

Currently, EPFO members must submit a withdrawal claim to access their provident fund money. Although most claims are processed online and many are auto-settled, the application process remains compulsory.  

EPFO settles over five crore claims every year, the bulk of them related to withdrawals. The proposed UPI-based mechanism aims to reduce procedural steps and administrative processing. 

Existing Auto-Settlement Framework 

EPFO introduced auto-settlement of advance claims during the COVID-19 period to provide quicker access to funds. Under this system, eligible claims are processed electronically, usually within 3 days.  

Over time, the withdrawal limit has been raised from ₹1 lakh to ₹5 lakh, allowing members to access funds for medical treatment, education, marriage and housing needs. 

Simplification of Partial Withdrawal Rules 

In October 2025, EPFO’s Central Board of Trustees approved changes to simplify partial withdrawal norms. Thirteen separate provisions were consolidated into a single framework grouped under essential needs, housing and special circumstances.  

Members can withdraw up to 100% of the eligible balance, including employee and employer contributions, while maintaining a mandatory minimum balance of 25%. 

Read More: Supreme Court Asks Centre to Review ₹15,000 EPF Wage Ceiling Within 4 Months! 

Conclusion  

The labour ministry and EPFO are currently addressing software-related issues linked to the new system. If implementation proceeds as planned, the UPI-based withdrawal facility is expected to be available from April, subject to formal notification. 

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