Salaried individuals in India will soon have a much easier way to access their retirement savings. The Employees’ Provident Fund Organisation is preparing to launch a new system that allows subscribers to withdraw their Provident Fund money directly through the Unified Payments Interface. This facility is expected to be operational by April 2026, offering a faster alternative to the current claim settlement process.
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How will the new UPI withdrawal system work?
The Labour Ministry is overseeing the development of a dedicated mobile application for this purpose. This app is scheduled to be launched in April this year. Through this platform, members can transfer funds to their linked bank accounts almost instantly using their UPI PIN. The department is currently conducting trials with dummy accounts to ensure the system works without technical glitches before the public rollout.
What are the new withdrawal limits and conditions?
Under the upcoming system, specific rules regarding account balances and withdrawal limits are being introduced. Subscribers will be permitted to withdraw up to 75% of their total PF balance. However, it is mandatory to maintain a minimum balance of 25% in the EPF account at all times. The government has also increased the number of times funds can be accessed for personal needs like marriage and education during the service period.
Requirements and transaction caps
To utilize the online EPF services, including the new UPI facility, having an Aadhaar-linked Universal Account Number is compulsory. Users must complete their KYC requirements to access these features. Reports indicate that there might be an initial transaction limit capped at ₹25,000 for UPI withdrawals. This initiative is part of the broader EPFO 3.0 plan to modernize services for the workforce.
