EPFO's big update: PF money can now be withdrawn via UPI from April onwards..
EPFO to Enable PF Withdrawal via UPI: EPFO has given a major and welcome update for millions of salaried employees in the country. From April 2026, employees will be able to withdraw their PF money directly through UPI. This means that the hassle of long forms, claims, and waiting periods will be largely eliminated. The PF amount can be transferred directly to the bank account using a UPI PIN. This will be as easy as making a payment via mobile. This change is expected to directly benefit approximately 8 crore EPFO members.
PF Withdrawal via UPI: What will change?
According to the report, EPFO will start the facility of PF withdrawal through UPI from April 2026. Under this, members will be able to use their UPI ID linked to their bank account. The same UPI PIN used for everyday digital payments will be valid to complete the transaction. The PF amount eligible for withdrawal will be displayed to the member beforehand, and the money will be transferred directly to the account based on that amount. After that, the member can use that amount for UPI payments, ATM cash withdrawals, or any other needs.
System Ready, Software Glitches Being Resolved
The Ministry of Labour and EPFO are working together to implement this new system. The report states that some technical issues related to the software are currently being resolved so that the system can function without interruption. The plan is also to keep a certain amount of PF locked in the account, while the remaining money can be withdrawn via UPI when needed. This will provide members with liquidity while also keeping their retirement savings secure.
How is withdrawn currently, and what will be the benefit after the change?
Currently, members have to file a claim to withdraw PF, which takes time. However, in auto-settlement mode, claims are now settled within three days. The government has already increased the auto-settlement limit from Rs 1 lakh to Rs 5 lakh. In October 2025, the rules for partial withdrawal of PF were also simplified, where 13 complex rules were combined into three categories. Under this scheme, up to 100 percent of the eligible PF amount can be withdrawn for illness, education, marriage, housing, and in special circumstances.
New Rules, Interest, and Benefits for Members
Under the new rules, PF withdrawals are permitted up to 10 times for education and 5 times for marriage. A minimum service period of 12 months has been made mandatory for all types of partial withdrawals. It has also been mandated that at least 25 percent of the PF amount must remain in the member's account to ensure they continue to benefit from the 8.25 percent annual interest and compounding. The waiting period for premature final PF settlement has been set at 12 months, and the period for pension withdrawal at 36 months. Overall, this move by the EPFO is considered a major step towards making PF more flexible and member-friendly.
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