PF Withdrawal via UPI: The EPFO is preparing to simplify the PF withdrawal process. The proposed changes could make it easier and less time-consuming for employees to withdraw their PF funds if needed.
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PF Withdrawal via UPI: The Employees’ Provident Fund Organization (EPFO) has announced a major convenience for its millions of members. Starting April 2026, members will be able to withdraw a portion of their provident fund directly through UPI, and the amount will be instantly credited to their bank account. This change is being made to make the withdrawal process faster and easier.
How will the new system work?
Under the new system, members will be able to securely withdraw their PF funds using their UPI PIN. A fixed minimum amount will be kept in the PF account, while the remaining amount will be transferred directly to the bank account. Once credited to the account, this money can be used through digital payments, ATMs, or debit cards.
Why is the new system necessary?
Currently, a claim has to be filed to withdraw funds from PF. Even under the auto-settlement system, it takes about three days for funds to arrive. More than 50 million claims are received each year, most of which relate to PF withdrawals. This new system is being developed to ease this burden.
Withdrawal Limit Higher
Previously, withdrawals of up to ₹1 lakh were possible under auto-settlement, but this has now been increased to ₹5 lakh. This will provide assistance within three days for needs such as illness, education, marriage, or home purchase.
According to sources, EPFO does not have a banking license, so it cannot allow direct withdrawals from accounts. However, the government wants EPFO services to be as easy and fast as banks.
Withdrawal rules also simplified
In October 2025, the EPFO’s Central Board of Trustees approved simplification of partial withdrawal rules. While there were previously 13 complex conditions, they have now been consolidated into three categories: essential needs (illness, education, and marriage), residential needs, and special circumstances. Members will now be able to withdraw up to 100% of the eligible amount, while 25% will remain protected to continue earning 8.25% interest and compounding benefits.
Lessons from COVID
During the pandemic, the EPFO introduced online self-settlement to provide immediate assistance to individuals. Now, a new system is being implemented to further enhance that experience.
This initiative by the EPFO will bring relief to approximately 80 million subscribers. This documentation-free and fast settlement system will provide financial freedom to employees and simplify their lives.
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