EPFO has announced a major update that will make transferring your Provident Fund balance much quicker when you change jobs.
Under the new software system EPFO 3.0, employees will get core-banking-like features, allowing PF funds to be transferred from the old account to the new one within three to seven working days after applying.
Reports indicate that the testing of this new process has been successful.
Once EPFO 3.0 is launched, the maximum transfer time will initially be seven days, but it will be reduced further.
In the future, EPFO also plans to introduce real-time fund transfers, where the money could move instantly or within 24 hours at most.
Why PF Transfer Is Important
By rule, employees must transfer their PF balance to their new account whenever they switch jobs.
If the old account remains inactive for three years, annual interest payments stop.
Currently, millions of accounts across the country face delays because the existing process is lengthy and time-consuming.
However, with the upcoming system, the transfer process will become much easier.
Aadhaar-Based Transfers by 2026
EPFO plans to introduce a simpler method by February 2026, where employees will be able to transfer their PF funds to a new account using just their Aadhaar number
and Universal Account Number (UAN). The transfer will be completed after completing KYC.
At present, the system requires verification from both the old and new employers before transferring funds, which takes time.
Under the new core banking system, EPFO will automatically know the balance in the old PF account
and when the employee has joined a new job, making the transfer quicker and smoother.
