Millions of EPF members may soon get major relief, as the government plans to make provident fund withdrawals faster and simpler.
A new UPI-based system is expected to change the way employees access their EPF money.
Here’s a clear and easy breakdown of what’s coming and why it matters.
EPF Withdrawal via UPI Likely From April
By April, EPF members may be able to withdraw their PF money directly into their bank accounts using UPI.
The Ministry of Labour is working on a system where a fixed portion of EPF savings will remain secure, while the eligible amount can be transferred instantly through UPI.
Members will be able to check their withdrawable balance and approve transfers using a UPI PIN, making the process both fast and secure.
The goal is to bring EPFO services closer to banking-level convenience, ensuring timely access to funds.
Use Your PF Money Freely After Transfer
Once the PF amount is credited to the bank account via UPI, members will have complete freedom to use the money.
They can make digital payments, transfer funds, or withdraw cash from ATMs using a debit card.
EPFO believes this will be especially helpful during financial emergencies, where quick access to money is crucial.
Earlier, delays in claim processing often made urgent withdrawals difficult.
Claim Process Set to Become Much Easier
At present, EPF withdrawals require filing a claim.
Even though auto-settlement allows claims to be cleared within three days, the application process is still mandatory.
The upcoming UPI-based system is expected to reduce or eliminate the need for repeated claims.
EPFO currently processes over 50 million claims every year, most related to PF withdrawals.
This new setup will ease the workload for the organisation while benefiting members.
Higher Auto-Settlement Limit Already in Place
EPFO has already raised the auto-settlement limit from ₹1 lakh to ₹5 lakh.
This allows faster withdrawals within three days for needs like medical treatment, education, marriage, and housing.
The facility was first introduced during the COVID-19 pandemic to support employees facing financial stress and is now being strengthened further.
Partial Withdrawal Rules Simplified
In October 2025, EPFO’s top decision-making body, the Central Board of Trustees, approved simplified partial withdrawal rules.
Earlier, there were 13 different provisions.
These have now been merged into one simple rule, divided into three categories:
Essential needs
Housing
Special circumstances
Under this system, members can withdraw up to 100 percent of their eligible balance, including both employee and employer contributions.
Retirement Security Still Protected
To ensure long-term financial stability, the new framework requires that at least 25 percent of the EPF balance remains untouched.
This helps members build a strong retirement corpus by earning 8.25 percent annual interest, along with the benefit of compounding.
According to the government, the reform balances easy withdrawals today with financial security tomorrow.
Overall, this move towards UPI-based withdrawals and greater automation could significantly improve convenience and quality of life for EPF members across the country.
