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In a major relief for salaried employees, EPFO is set to introduce UPI-based Provident Fund withdrawals by April. The new system will allow members to transfer PF money directly to their linked bank accounts using UPI, reducing delays and paperwork.
EPFO to Enable PF Withdrawals via UPI by April 2026
New Delhi: There's good news for millions of employees working in the private sector. The Employees' Provident Fund Organization (EPFO) is going to simplify the PF withdrawal process. By April, EPFO members will be able to transfer their PF funds directly to their linked bank accounts through UPI. This facility will benefit approximately 80 million members and will largely eliminate the current time-consuming process.
Currently, to withdraw PF, members have to file a claim, which takes several days for verification and settlement. Document verification and technical procedures sometimes cause payment delays. To address this problem, the EPFO and the Ministry of Labor are developing a new digital system.
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After the implementation of the new system, members will be able to transfer funds from their EPF accounts through the UPI payment gateway. Upon withdrawal, the transaction will need to be approved by entering the UPI PIN. The money will be deposited directly into the bank account, which can be withdrawn from an ATM or used for digital payments. The entire process will be secure and fast.
Under this scheme, a portion of the EPF account will be frozen, but withdrawals up to a certain limit can be made through UPI. The auto-settlement mode limit has already been increased from ₹1 lakh to ₹5 lakh. This will allow members to withdraw funds within three days for needs such as illness, education, marriage, or home construction.
Early, the EPFO settles more than 50 million claims, most of which involve PF withdrawals. This process places a heavy burden on the EPFO. A UPI-based system will not only ensure faster disbursement of funds to members but will also increase the EPFO's administrative efficiency.
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According to a senior official, the EPFO does not have a banking license, so it cannot make cash payments directly from accounts. However, this facility can be provided through UPI using the banking network. The government aims to modernize EPFO services and bring them at par with banks.
The Ministry of Labor and EPFO are addressing technical glitches in the software. It is expected that this facility will be implemented in a phased manner from April 2026, directly benefiting millions of employees.
