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From April, PF members will be able to withdraw their money through UPI.

Employees' Provident Fund Organization (EPFO) shareholders will be able to withdraw from their provident fund through UPI by April this year and the amount will reach their bank accounts directly. According to information received from official sources, in this scheme, some part of the members will be protected as minimum amount, while the remaining amount can be transferred directly to their bank account. EPFO members will be able to make secure transactions from their Employees' Provident Fund (EPF) using their UPI PIN. After the money reaches the bank account, it can be used through electronic payment, ATM or debit card.

attempt to correct deficiencies

According to sources, the Employees' Provident Fund Organization (EPFO) is trying to remove software related flaws for the smooth implementation of this system. At present, EPFO ​​members have to apply for withdrawal from the provident fund, which is a time-consuming process. Under the automatic settlement process, the money comes into the account within three days of applying. The limit for withdrawal through this method was earlier Rs 1 lakh but it has been increased to Rs 5 lakh. With this, members will be able to get financial assistance within three days for needs like illness, education, marriage and house purchase.

This system started in Covid

EPFO had launched online auto-settlement of advance claims to provide quick assistance to people facing financial distress during the COVID-19 pandemic. However, for withdrawal from EPF all the shareholders have to file a claim. To avoid this time-consuming process and reduce the burden on EPFO, a new system is being prepared. This is because more than five crore claims are settled every year. Most of these are for EPF withdrawal. Sources said that EPFO ​​cannot allow its members to withdraw money directly from EPF accounts as it does not have any banking license. However, sources said that the government wants to improve the services of EPFO ​​like banks.

Approval was given in October

In October 2025, the Central Board of Trustees of EPFO ​​had approved making the provisions for partial withdrawal from EPF simple and flexible. In this, 13 complex provisions have been included in three categories – essential needs (sickness, education and marriage), residential needs and special circumstances. Now members will be able to withdraw up to 100 percent of the amount eligible for withdrawal from their provident fund, while a minimum amount of 25 percent will be reserved so that the shareholder continues to get the benefit of high interest rate (currently 8.25 percent) and compound interest.

EPFO aims to ensure easy, fast and secure EPF withdrawal for members with this reform. This initiative will be beneficial for approximately eight crore subscribers and will also reduce the operational burden of EPFO. The government hopes that this document-free and automatic-settlement scheme will simplify the lives of employees and ensure their financial independence.