The Employees’ Provident Fund Organisation (EPFO) is planning to allow subscribers to withdraw their eligible EPF balance directly into their bank accounts using UPI by April 2026. Once implemented, this will eliminate the need for filing traditional EPF claims and significantly reduce waiting time for fund transfers.
The proposal, currently being developed by the labour ministry, is expected to offer bank-like convenience to nearly 8 crore EPFO members, allowing instant access to their provident fund money through the Unified Payments Interface (UPI).
EPF Withdrawal Through UPI: How the New System Will Work
According to sources cited by PTI, EPFO is working on a system where a portion of the EPF balance will be frozen, while a large chunk will be made available for instant withdrawal through UPI-linked bank accounts. Subscribers will be able to view the eligible EPF withdrawal amount directly on the EPFO portal.
Once the feature is live, members can transfer the eligible EPF amount to their Aadhaar-seeded bank account using their UPI PIN, without submitting any manual claim forms or employer approvals. After the transfer, the money can be used for digital payments or withdrawn via ATM, just like regular bank funds.
How Much EPF Can Be Withdrawn via UPI?
As per the plan, EPFO subscribers will be allowed to withdraw up to 100% of their eligible EPF balance, while maintaining a mandatory minimum balance of 25% in the account. This retained amount will continue to earn interest at 8.25% per annum, ensuring long-term retirement savings remain intact. Subscribers will be able to see the withdrawable EPF balance in real time,.
At present, EPFO processes over 5 crore EPF claims every year, putting heavy pressure on its systems and staff. The proposed UPI-based EPF withdrawal system is expected to drastically reduce this workload by enabling instant, claim-free transfers. Since EPFO does not hold a banking licence, the organisation will continue to route EPF withdrawals through banks using the UPI platform, ensuring regulatory compliance while speeding up settlements.
Builds on Auto-Settlement of EPF Claims
This move builds on EPFO’s earlier reforms, including the auto-settlement of EPF claims, where the withdrawal limit was raised to Rs 5 lakh. Auto-settlement currently applies to cases such as medical emergencies, education, marriage and housing, allowing faster access to funds without extensive verification.
In October 2025, the EPFO Central Board of Trustees approved liberalised partial withdrawal rules, allowing members to withdraw up to 100% of their eligible balance, subject to maintaining a minimum corpus. The UPI integration is seen as a natural extension of these reforms.
When Will EPF Withdrawal via UPI Be Available?
EPFO is currently addressing software integration and technical challenges, and the new EPF withdrawal through UPI system is expected to be rolled out by April 2026. Once operational, it could transform how salaried employees access their provident fund savings.
