• Source:JND

PF UPI Withdrawal: The Employees' Provident Fund Organisation (EPFO) is preparing to introduce a significant convenience for its over 8 crore members. By April 2026, members will be able to directly transfer eligible amounts from their Employee Provident Fund (EPF) accounts to their bank accounts using UPI.

Rules For PF Withdrawal Set To Change

According to reports, under the new system, PF members will be able to securely complete transactions using their UPI PIN.

A minimum portion (25 per cent) of the amount in the account will remain untouched to ensure members continue to receive the current 8.25 per cent interest rate, along with the benefit of compound interest.

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The remaining amount will be instantly credited to the member's bank account, after which it can be used for digital payments, cash withdrawal from ATMs, or through debit cards.

EPFO Working To Fix Glitches

EPFO is currently working at a fast pace to resolve technical challenges and software-related issues to ensure the smooth implementation of the system.

At present, members have to file a claim for withdrawal, which is a time-consuming process. Even under the existing auto-settlement facility, it takes up to three days. The new arrangement is expected to make the process significantly faster.

Auto-Settlement Service Launched

EPFO had introduced online auto-settlement during the COVID-19 pandemic to provide immediate financial assistance to people facing crises. It is worth noting that more than 5 crore claims are settled every year, the majority of which are related to withdrawals.

According to reports, EPFO cannot directly allow members to withdraw money from their EPF accounts as it does not hold a banking licence. However, the government is emphasising the need to make EPFO services more efficient and convenient, similar to banking facilities.

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When Can Members Withdraw Money

In October 2025, the Central Board of Trustees of EPFO approved the simplification of provisions for partial withdrawals. The earlier 13 conditions were reduced and consolidated into three main categories:

- Essential needs (illness, education, marriage)

- Housing needs

-Special circumstances

Members can now withdraw up to 100 per cent of the eligible amount, while the minimum portion will remain protected. The withdrawal limit has also been increased to Rs 5 lakh.


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