PF Update: From April, PF money can be withdrawn through UPI; withdrawals will be done using the BHIM app..

There's a big relief for millions of employees associated with the Employees' Provident Fund Organization (EPFO). Starting April 2026, employees will be able to withdraw money directly from their EPF accounts through UPI. This feature will be available through the BHIM app, and funds will be transferred directly to the UPI-linked bank account. This will make the PF withdrawal process easier, faster, and more digital than ever before. This will especially benefit employees who currently face difficulties withdrawing money through online portals.

Facility to Withdraw PF Directly from the BHIM App
According to government officials, starting April, EPFO ​​members will be able to check their PF account balance through the BHIM app. It will also clearly show how much money is eligible for withdrawal and the minimum 25% balance required in the account. Initially, a withdrawal limit of up to ₹25,000 per transaction has been considered. This step is being taken to prevent misuse of instant transactions.

EPFO, NPCI, and SBI are jointly developing the system.
EPFO, C-DAC, and NPCI are working together to develop this entire system. State Bank of India is responsible for payment coordination. Withdrawals made through UPI will be subject to the same rules as regular UPI transactions. This means all existing security and verification guardrails will remain in place. In the initial phase, this feature will be available only through the BHIM app.

Labourers and Blue-Collar Workers Will Benefit Majorly
This new facility is expected to benefit blue-collar and unorganized sector workers the most. Many workers currently struggle to navigate the EPFO's online portal or documentation process. Withdrawals through UPI will allow them to easily withdraw PF through the mobile app. However, officials have also warned that frequent withdrawals of small amounts could lead to the annual withdrawal limit being exceeded.

Be cautious about withdrawal frequency.
The EPFO ​​has set withdrawal limits along with the withdrawal amount. If a member makes 2-3 withdrawals in quick succession, even if the total amount is within the limit, further withdrawals will not be possible once the limit is reached. Therefore, members must consider both the amount and frequency when making withdrawals. The government's goal is to provide convenience, not to deplete retirement funds quickly.

Delays due to changes in the Labor Code and regulations
This feature could have been implemented earlier, but the notification of the Labor Code in November and changes to PF withdrawal rules in October necessitated the necessary modifications to the software. Under the new rules, 75% of the amount is withdrawable, while 25% is required to be maintained as a minimum balance in the account. After incorporating these changes into the system, this feature is now in the final stages.

PF withdrawal rules have already been simplified.
EPFO has already simplified withdrawal rules. The 13 withdrawal categories have now been reduced to three: essential needs, housing needs, and special circumstances. Partial withdrawals are now permitted 10 times for education and 5 times for marriage. Multiple withdrawals are also permitted in cases of illness. In the event of unemployment, the option to withdraw 75% of the amount immediately and the full amount after one year has been provided. Overall, this facility of EPF withdrawal through UPI is considered a major step towards ensuring easy and quick access to retirement funds for millions of employees across the country.

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