EPFO to Enable UPI-Based EPF Withdrawals from April, Instant Transfers Likely

In a major digital upgrade for salaried employees, the Employees' Provident Fund Organisation (EPFO) is preparing to introduce a new facility that will allow members to withdraw money from their Employees’ Provident Fund (EPF) accounts directly through UPI.

According to reports, the service could be rolled out as early as April, offering faster and more seamless fund transfers directly into members’ linked bank accounts.

What Is Changing for EPF Members?

Currently, EPF withdrawals require members to submit claims online through the EPFO portal. While the auto-settlement system processes claims up to ₹5 lakh within three working days, the new UPI-enabled system is expected to significantly reduce waiting time.

Under the proposed system:

• Members can log in via the UAN portal or the UMANG app

• Submit withdrawal requests digitally

• Authenticate the transaction using a UPI PIN

• Receive funds almost instantly in their bank account

The integration is being designed to work alongside the existing Universal Account Number (UAN) system, ensuring secure verification.

System Testing Underway

EPFO is currently conducting technical trials before the official launch. Around 100 dummy accounts are reportedly being used to test the system’s performance, security framework, and transaction flow.

The aim is to eliminate technical glitches and ensure smooth fund transfers once the service becomes publicly available.

How Much Can Members Withdraw?

As per current EPF rules:

• Members can withdraw up to 75% of their available EPF balance in eligible cases.

• Full withdrawal is allowed only if the individual has been unemployed for at least one year.

Under the new UPI-based system, the same withdrawal limits will apply. Members will need to select a valid reason for withdrawal such as:

• Medical emergencies

• Higher education

• Marriage

• Home purchase or construction

Once verified, the amount will be transferred digitally using UPI authentication.

Faster Processing Compared to Current System

At present, EPFO’s auto-claim settlement system processes eligible claims of up to ₹5 lakh within three days. However, the UPI-based model aims to reduce this timeline dramatically, potentially allowing near-instant transfers.

This move aligns with India’s broader push toward digital financial services and real-time payment systems.

Additional Benefits for Members

Along with withdrawals, the upgraded system is expected to allow members to:

• Check EPF passbook balance online

• Track claim status in real time

• Access digital services more efficiently

Every year, EPFO settles over 5 crore withdrawal claims. With UPI integration, the process could become significantly faster and more transparent.

Why This Update Matters

For millions of salaried employees, EPF savings serve as an emergency financial cushion. Delays in accessing funds during urgent situations can create stress. The introduction of UPI-based withdrawals is expected to simplify access and improve user experience.

If implemented successfully, this digital initiative could mark one of the most significant upgrades to EPF services in recent years.

Disclaimer: Official rollout dates and operational details are subject to confirmation by EPFO. Members are advised to check the official EPFO portal for updates before making financial decisions.