Good news for EPF subscribers: UPI, ATM-based PF withdrawals likely before June-end

The Ministry of Labour is in the final stages of introducing a facility that will allow Employees' Provident Fund (EPF) subscribers to withdraw money through UPI and ATM cards. The service is expected to be rolled out before the end of June. Once the new Version 2.01 server becomes operational, EPFO members will be able to access their PF savings directly through UPI and ATMs. Preparations for the launch are in the final stages, and the facility could go live within the next few days.

EPFO 3.0 is designed to enhance the speed, efficiency and accessibility of PF-related services while reducing paperwork for employees, pensioners and employers. Eligible members will be able to transfer PF funds directly to their Aadhaar-linked and bank-seeded accounts through UPI or ATMs, making withdrawals faster and reducing paperwork, delays and manual intervention. The move is also expected to enhance transparency and accountability.

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How much PF can members withdraw?

According to the proposed framework, eligible EPFO subscribers may be allowed to withdraw 50% to 75% of their accumulated EPF corpus, subject to conditions and eligibility criteria that will be notified once the facility becomes operational.

However, at least 25% of the total balance will remain locked in the account as a mandatory retirement cushion. The provision is aimed at preserving long-term savings and ensuring that the EPF continues to serve its primary purpose of providing financial security after retirement.

Latest Features of EPFO 3.0

• Auto-settlement of claims: Eligible EPF advance claims of up to Rs 5 lakh can now be processed through auto-settlement, reducing manual intervention and speeding up claim processing.
• Digital record corrections: EPFO 3.0 aims to make profile and record corrections less dependent on physical office visits, although certain changes may still require employer or EPFO approval.
• Reduced employer dependency: Aadhaar-based authentication and digital verification are expected to simplify claim and withdrawal processes, though employer clearance may still be needed in some KYC and record-correction cases.
• UPI and ATM withdrawals: EPFO is preparing to enable faster PF withdrawals through UPI and UPI-enabled ATMs. While testing has reportedly been completed, the retirement fund body has not yet announced a final launch date.

Checklist for EPF members

Link Aadhaar with your Universal Account Number (UAN).
Verify your bank account details on the EPFO member portal.
Ensure personal details match across Aadhaar, PAN and EPFO records.
Set up and confirm your UPI ID with the linked bank account.
Register on DigiLocker.
Correct any discrepancies to avoid delays when the new system becomes operational.