EPFO news: UPI-based EPF withdrawals to start by April, aiming for streamlined access
EPFO will allow it subscribers to gain faster access to their provident fund savings, with the facility to withdraw EPF directly into their bank accounts through a UPI-based payment gateway expected to roll out by April this year. The labour ministry is developing a system under which a portion of the EPF balance will remain locked in, while a substantial share can be withdrawn seamlessly via the Unified Payments Interface.
- Jan 16, 2026,
- Updated Jan 16, 2026 10:19 PM IST
The Employees’ Provident Fund Organisation (EPFO) is set to roll out a major upgrade to its withdrawal system by enabling members to access their provident fund savings through the Unified Payments Interface (UPI) from April. The move is aimed at making fund withdrawals faster, simpler and more transparent, addressing long-standing concerns over delays, paperwork and procedural complexity, news agency PTI reported.
At the heart of the reform is a sweeping simplification of withdrawal rules. The EPFO’s Central Board of Trustees has approved the consolidation of 13 separate provisions governing partial withdrawals into a single, unified framework. Under the revamped structure, withdrawal requests will now fall under three broad categories — essential needs, housing requirements and special circumstances. By streamlining eligibility criteria and documentation, the organisation expects to significantly expand auto-settlement of claims and improve the overall experience for subscribers.
EPF withdrawal
The new rules will allow members to withdraw up to the full amount of their eligible EPF balance, covering both employee and employer contributions. However, a minimum of 25 per cent of total contributions must remain in the account, ensuring that members continue to benefit from the scheme’s current annual interest rate of 8.25 per cent and the long-term advantage of compounding for retirement savings.
Around eight crore EPFO members are expected to benefit from the changes. The auto-settlement feature, which was introduced during the pandemic for emergency advances, will now be extended to cover withdrawals under the simplified categories. Officials believe this will significantly reduce the administrative burden associated with the more than five crore claims processed every year, while also speeding up disbursals.
How will it work
A key element of the reform is the integration of UPI for authorising and completing transactions. Members will be able to view the amount eligible for withdrawal in real time and approve transfers using their linked UPI PIN. Once authorised, the funds will be credited directly to their bank accounts, allowing immediate access through digital payments or debit cards. The system is designed to eliminate manual applications entirely, with the goal of processing eligible withdrawals electronically within three days, without human intervention.
Officials involved in the rollout told PTI that the EPFO is currently fine-tuning its software infrastructure to ensure a smooth launch. The Ministry of Labour is overseeing the final stages of implementation, including the resolution of technical glitches that could affect large-scale adoption. Once fully operational, the system is expected to set a new benchmark for digital public services in the social security space.
While the EPFO does not have a banking licence and cannot allow direct cash withdrawals from provident fund accounts, the government is keen to align its services with modern banking standards. The introduction of UPI-enabled withdrawals is seen as a major step in that direction, giving workers greater control over their savings while retaining strong safeguards for retirement security.
The formal notification of these changes is expected shortly, following approval by Union Labour Minister Mansukh Mandaviya. For millions of salaried employees, the reform promises to transform how they access their hard-earned provident fund savings, making the process quicker, safer and far more user-friendly than ever before.
The Employees’ Provident Fund Organisation (EPFO) is set to roll out a major upgrade to its withdrawal system by enabling members to access their provident fund savings through the Unified Payments Interface (UPI) from April. The move is aimed at making fund withdrawals faster, simpler and more transparent, addressing long-standing concerns over delays, paperwork and procedural complexity, news agency PTI reported.
At the heart of the reform is a sweeping simplification of withdrawal rules. The EPFO’s Central Board of Trustees has approved the consolidation of 13 separate provisions governing partial withdrawals into a single, unified framework. Under the revamped structure, withdrawal requests will now fall under three broad categories — essential needs, housing requirements and special circumstances. By streamlining eligibility criteria and documentation, the organisation expects to significantly expand auto-settlement of claims and improve the overall experience for subscribers.
EPF withdrawal
The new rules will allow members to withdraw up to the full amount of their eligible EPF balance, covering both employee and employer contributions. However, a minimum of 25 per cent of total contributions must remain in the account, ensuring that members continue to benefit from the scheme’s current annual interest rate of 8.25 per cent and the long-term advantage of compounding for retirement savings.
Around eight crore EPFO members are expected to benefit from the changes. The auto-settlement feature, which was introduced during the pandemic for emergency advances, will now be extended to cover withdrawals under the simplified categories. Officials believe this will significantly reduce the administrative burden associated with the more than five crore claims processed every year, while also speeding up disbursals.
How will it work
A key element of the reform is the integration of UPI for authorising and completing transactions. Members will be able to view the amount eligible for withdrawal in real time and approve transfers using their linked UPI PIN. Once authorised, the funds will be credited directly to their bank accounts, allowing immediate access through digital payments or debit cards. The system is designed to eliminate manual applications entirely, with the goal of processing eligible withdrawals electronically within three days, without human intervention.
Officials involved in the rollout told PTI that the EPFO is currently fine-tuning its software infrastructure to ensure a smooth launch. The Ministry of Labour is overseeing the final stages of implementation, including the resolution of technical glitches that could affect large-scale adoption. Once fully operational, the system is expected to set a new benchmark for digital public services in the social security space.
While the EPFO does not have a banking licence and cannot allow direct cash withdrawals from provident fund accounts, the government is keen to align its services with modern banking standards. The introduction of UPI-enabled withdrawals is seen as a major step in that direction, giving workers greater control over their savings while retaining strong safeguards for retirement security.
The formal notification of these changes is expected shortly, following approval by Union Labour Minister Mansukh Mandaviya. For millions of salaried employees, the reform promises to transform how they access their hard-earned provident fund savings, making the process quicker, safer and far more user-friendly than ever before.