EPFO May Soon Allow Members to Withdraw Money via UPI

Employees’ Provident Fund Organisation (EPFO) may soon allow the members to withdraw their savings through Unified Payment Interface (UPI), making it faster and more convenient for members to access their savings.

Some sources reveal that the labour ministry is planning to introduce a system where the EPFO subscribers will be allowed to access a certain part of their Employees’ Provident Fund (EPF) using UPI. The other portion of your balance will remain blocked and inaccessible. The sources also say that under this system, the members will be able to check the available EPF balance that can be transferred into their linked bank account.

Currently, the EPF members have to go through a lengthy process to withdraw their savings. For the withdrawal, the members are required to submit withdrawal claims, which takes much time and increases the work burden on the EPFO.

However, the new UPI-based system is expected to make withdrawals faster and more convenient. To complete the withdrawal, the members will use a UPI PIN, which is safe and secure and ensures smooth transfers. Once the money is transferred, members can use it for anything, whether it is for making online payments or withdrawing cash from ATMs with their debit cards.

The organisation is now working on fixing some technical issues to make this system run smoothly.

The current auto-settlement system, the EPF withdrawal, is settled electronically within three days without much manual involvement. The organisation had earlier increased the withdrawal limit from Rs 1 lakh to Rs 5 lakh, allowing the members to access funds for important needs like healthcare, education, marriage and housing.

However, the EPFo cannot directly allow the members to withdraw from bank accounts, as it does not hold a banking licence. The sources say that the government is planning to bring EPFO services “at par with banks” primarily to reduce the workload on EPFO, as it processes around five crore claims every year, and many of them are related to EPF withdrawals.

The governing body of EPFO, the Central Board of Trustees (CBT), approved a simplification of the partial withdrawal rules in October 2025. This change combines 13 complex provisions into a single, simple one. The new rule will cover three important categories, including essential needs (like illness, education, and marriage), housing needs, and special circumstances. Members will be allowed to withdraw up to 100% of their eligible EPF balance, which includes both their own and their employer’s contributions.

However, a minimum of 25% of the total contributions will be kept aside in the account so that the members can earn the EPFO’s high interest rate of 8.25% per annum and build a good retirement fund. These new changes are expected to be announced soon.