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Employees’ Provident Fund (EPF) subscribers may soon be able to withdraw a portion of their provident fund directly through UPI, marking a major step toward faster and more convenient access to retirement savings. According to senior government sources, the Employees’ Provident Fund Organisation (EPFO) is working on a UPI-based withdrawal system that could be rolled out by April 2026.

Once implemented, this facility will allow EPF subscribers to transfer eligible funds directly into their bank accounts using UPI, eliminating the need to file a traditional withdrawal claim for certain amounts.

How the New UPI-Based EPF Withdrawal Will Work

At present, EPF subscribers are required to submit an online withdrawal claim, which then goes through verification and settlement. While the process has become faster in recent years, it still involves procedural steps and waiting time.

Under the proposed UPI-based system, the Labour Ministry and EPFO are developing a mechanism where:

• A specific portion of the EPF balance will remain locked, as per existing rules

• The remaining eligible amount can be withdrawn instantly via UPI

• Subscribers will be able to clearly see how much money is available for UPI withdrawal

Once the transaction is approved, the amount will be credited instantly to the subscriber’s linked bank account, offering near real-time access to funds.

UPI PIN to Ensure Secure Transactions

To maintain security, subscribers will be required to authenticate withdrawals using their linked UPI PIN. This will ensure that transactions remain safe and fully under the subscriber’s control.

After the money is credited to the bank account, subscribers can:

• Use it for digital payments

• Transfer it to another account

• Withdraw cash from ATMs, just like any regular bank balance

Officials say this approach will make EPF withdrawals both faster and more secure.

Up to 8 Crore EPF Subscribers Likely to Benefit

The EPFO is currently working on the necessary software and backend infrastructure to support this system. Once operational, the facility is expected to benefit around 8 crore EPF subscribers across the country.

Currently, EPFO processes more than 5 crore claims every year, most of which are related to EPF withdrawals. Even though auto-settlement has reduced processing time, the sheer volume of claims creates a significant administrative burden.

The introduction of UPI-based withdrawals is expected to:

• Reduce paperwork and manual intervention

• Lower processing pressure on EPFO systems

• Provide quicker access to funds for subscribers

Existing Auto-Settlement System and Limits

At present, EPFO already offers an auto-settlement system for certain advance claims. Under this system:

• Claims are settled electronically within three days

• No human intervention is required

• The withdrawal limit has been increased from ₹1 lakh to ₹5 lakh

This facility is commonly used for expenses related to:

• Medical treatment

• Education

• Marriage

• Housing needs

Despite these improvements, subscribers still need to submit a formal claim. The upcoming UPI-based system aims to eliminate this extra step for eligible withdrawals.

Why EPFO Cannot Allow Direct Cash Withdrawal

Officials have clarified that EPFO cannot allow direct withdrawals from EPF accounts in the same way banks do, as it does not hold a banking license. However, the government is actively working to make EPFO services bank-like in convenience, without violating regulatory norms.

By routing withdrawals through UPI and linked bank accounts, EPFO can offer instant access while staying within its legal framework.

A Big Step Toward Digital Convenience

The idea of UPI-based EPF withdrawals builds on the digital initiatives launched during the COVID-19 period, when EPFO introduced online auto-settlement for advance claims. While that was a major milestone, the new system could take convenience to the next level.

Once implemented, EPF subscribers may no longer need to:

• File repetitive withdrawal claims

• Wait days for approval in emergency situations

Instead, they will be able to access eligible funds quickly, securely, and digitally.

What Subscribers Should Expect Next

While the facility is still under development, officials indicate that testing and phased implementation could begin soon, with a full rollout expected by April 2026. EPFO is likely to issue detailed guidelines on eligibility, limits, and usage closer to the launch.

For millions of salaried employees, this move could significantly improve financial flexibility, making EPF savings more accessible when they are needed the most—without compromising long-term retirement security.