Big Update For Salaried Class In India: Subscribers Can Soon Withdraw PF Money Through UPI

EPFO New App: The Employees' Provident Fund Organisation (EPFO) is set to launch a new mobile application by April 2026 that will allow its 8 crore members to withdraw eligible portions of their Provident Fund (EPF) directly via Unified Payments Interface (UPI).  A certain proportion of the EPF will be frozen, and a large chunk will be available for withdrawal through their bank account using UPI, a top source told PTI. This new system, part of the EPFO 3.0 upgrade, aims to make the withdrawal process instantaneous, paperless, and fully digital. 

EPFO members currently need to apply for withdrawal claims, which takes time. The new auto-settlement mode settles claims electronically within 3 days, without manual intervention. The limit of this auto-settlement mode has already been raised to Rs 5 lakh from the existing Rs 1 lakh. The new system aims to simplify the process and ease the load on EPFO, which handles over 5 crore claims annually, mostly for EPF withdrawals. The source added the government wants to improve EPFO services to be on par with banks.

Features of the UPI Withdrawal System

• Instant Transfers: Members can transfer eligible funds to their linked bank accounts almost instantly using their UPI PIN, bypassing the traditional claim filing process that can take several days. This facilitates a large number of EPFO members to access their EPF money within three days for illness, education, marriage, and housing purposes.
• Withdrawal Limits: Initial discussions suggest a proposed cap of Rs 25,000 per transaction for UPI-based withdrawals.
• Balance Segregation: The app will clearly display the "eligible balance" for withdrawal while keeping a minimum of 25% of the total balance locked for retirement security.
• App Integration: The facility will be available through a dedicated new EPFO app, which will be integrated with the BHIM app and other UPI platforms. 

The Ministry of Labour and Employment is currently conducting trial runs using 100 dummy accounts to identify and resolve any technical issues before the public rollout in April 2026. While the new app becomes the primary mobile interface for UPI withdrawals, existing platforms like the EPFO Unified Member Portal and the UMANG app will remain operational for other services.