EPF Withdrawals Soon Possible via UPI: Money to Transfer Directly to Bank Accounts

Good News for EPFO Members
Employees’ Provident Fund Organisation (EPFO) members will soon be able to transfer their Provident Fund (PF) money directly to their bank accounts through UPI (Unified Payments Interface). This facility is expected to roll out from April 2026 as part of a major initiative by the Ministry of Labour.

Under this plan, a portion of your EPF account will remain frozen, but the majority of the funds can be withdrawn using the UPI payment gateway. Once transferred, the money can be used freely for any purpose. EPFO is currently working on addressing software and system issues to ensure smooth implementation. The new system will benefit around 8 crore EPFO members across India.

How the Transfer Will Work
Members eligible for this facility will be able to see the withdrawable amount in their EPF account. Using their linked UPI PIN, they can transfer the funds securely to their bank accounts. Once received, the money can be used for online payments or withdrawn from ATMs using a debit card.

Current Withdrawal Process
Currently, EPF withdrawals require members to file a claim, which can take time. EPFO already has an auto-settlement system where claims are processed electronically within three days, without manual intervention. Recently, the auto-settlement limit was increased from ₹1 lakh to ₹5 lakh, allowing members to quickly access funds for medical emergencies, education, weddings, or home purchases.

Purpose of the New System
The new UPI-based system aims to reduce delays in EPF withdrawals and ease the workload on EPFO offices. Every year, over 5 crore claims are processed, mostly for withdrawals.

A senior official noted that EPFO cannot directly withdraw funds to members’ accounts, as it does not hold a banking license. However, the government aims to enhance EPFO services to bring them closer to banking-level convenience and efficiency.