EPFO to Enable PF Withdrawal via UPI: EPFO has given a big and relief update for crores of employed people of the country. From April 2026, employees will be able to withdraw their PF money directly through UPI. This means that now the hassle of long forms, claims and waiting is going to end to a great extent. PF amount can be transferred directly to the bank account through UPI PIN. This is going to be as easy as making payment through mobile. About 8 crore EPFO members are expected to get direct benefits from this change.
PF withdrawal from UPI: What is going to change
According to the report, EPFO will start the facility of withdrawing PF through UPI from April 2026. Under this, members will be able to use the UPI ID linked to their bank account. To complete the transaction, the same UPI PIN, which is used in everyday digital payments, will be valid. The amount of PF that will be eligible for withdrawal will be visible to the member in advance and on the basis of that the money will be directly transferred to the account. After this, members will be able to use that amount for UPI payment, cash from ATM or for any need.
System is ready, software flaws are being removed
Labor Ministry and EPFO are working together to implement this new system. It has been told in the report that at present some technical problems related to the software are being resolved, so that the system can work without interruption. The plan is also that a certain amount of PF remains locked in the account and the remaining money can be withdrawn through UPI when needed. This will provide liquidity to the members and their retirement savings will also remain safe.
How is PF withdrawn now and what will be the benefit after the change?
At present, to withdraw PF, members have to file a claim, which takes time. However, in auto-settlement mode, claims are now settled within three days. The government has already increased the auto-settlement limit from Rs 1 lakh to Rs 5 lakh. The rules for partial withdrawal of PF were also simplified in October 2025, where 13 complex rules have been combined into three categories. Under this, up to 100 percent of the eligible PF amount can be withdrawn in case of illness, studies, marriage, home and special circumstances.
New rules, interest and benefits to members
Under the new rules, PF withdrawal is allowed 10 times for education and 5 times for marriage. A minimum of 12 months of service has been made mandatory for all types of partial withdrawals. Apart from this, a rule has also been made that at least 25 percent PF amount should remain in the member’s account, so that he can get the benefit of 8.25 percent annual interest and compounding. The waiting period for premature final PF settlement has been reduced to 12 months and the period for pension withdrawal to 36 months. Overall, this step of EPFO is being considered as a big change in the direction of making PF more flexible and member-friendly.
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