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EPF UPI Withdrawal: There is big and good news for lakhs of employees associated with EPFO. From April 2026, EPF subscribers will be able to withdraw money from their PF account directly to their bank account and that too through UPI. With this, the process of withdrawing EPF will become very easy, fast and completely digital. PTI, quoting sources, has said in a report that the Labor Ministry is working on a system in which a fixed amount of the EPF balance will be kept safe (frozen), while the remaining major part can be transferred directly to the member’s bank account through the UPI payment gateway. Under this facility, EPFO ​​members will be able to clearly see in their account how much money is available for withdrawal from their EPF balance.

How will the money be withdrawn through UPI?

Under the new system, EPF members will be able to complete transactions securely using the UPI PIN linked to their bank account. Once the money is in their bank account, members can use the money as per their need, be it making digital payments through UPI or withdrawing cash from ATM using their debit card. Sources said that the Employees’ Provident Fund Organization (EPFO) is working on fixing all the technical problems to the software before implementing this system. Its implementation will directly benefit about 80 million EPFO ​​members across the country. Currently, to withdraw money from EPF, members have to file a claim, which is a long and time-consuming process.

What was happening till now?

Currently, under the auto-settlement mode, some EPF claims are settled within three days, but it still requires an application. The good news is that the auto-settlement limit has already been increased from ₹1 lakh to ₹5 lakh. With this, a large number of members can withdraw money within three days for illness, education, marriage and home needs.

EPFO was the first to launch the auto-settlement facility for advance claims to provide immediate relief to employees facing financial difficulties during the COVID-19 pandemic. Despite this, more than 5 crore EPF claims are processed every year, most of which are to withdrawals. The purpose of the new UPI-based system is to reduce this burden and make the process easier.

Why does EPFO ​​not allow direct withdrawal of money?

According to sources, EPFO ​​cannot allow its members to withdraw money directly from their PF account as it does not have a banking license. However, the government wants EPFO’s services to be as easy and fast as those of banks, that is why this new system is being developed. Earlier, in October 2025, the Central Board of Trustees (CBT), the highest decision-making body of EPFO, had approved simplifying and liberalizing the rules for partial EPF withdrawal. These decisions will be notified soon, as the minutes of the meeting have been approved by Union Labor Minister Mansukh Mandaviya.

Under what circumstances are partial withdrawals permitted?

To make life easier for its members, the complex rules for partial withdrawal under the EPF scheme have been simplified. Earlier, there were 13 different provisions, but now these have been combined into a single, simple rule, divided into three categories:

• Illness, education and marriage
• housing needs
• necessary circumstances

How much amount can be withdrawn?

Under the new system, EPF members will be able to withdraw up to 100 percent of the total eligible amount in their account, which includes the contribution of both the employee and the employer. However, as a safety precaution, it will be necessary to maintain a minimum balance of at least 25 percent of the account balance. With this, members will continue to get the benefit of EPFO’s current 8.25 percent annual interest rate and compounding, which will create a strong fund for retirement. This reform will ensure easier and faster access to EPF funds and also protect the retirement savings of members. Simplification of rules, increased flexibility and facility of auto-settlement without any documentation will pave the way for 100 percent auto-settlement system in future, making life easier for millions of employees.

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