The Employees' Provident Fund Organisation is preparing to allow members to withdraw provident fund savings directly through UPI, with funds credited straight into linked bank accounts. EPFO is gearing up for a major digital upgrade where members may soon be able to withdraw PF funds through UPI under the EPFO 3.0 framework, with Labour Minister Mansukh Mandaviya confirming that testing of the UPI payment gateway has been completed.
The new system cuts out the need for employer sign-off and eliminates long processing delays. EPFO 3.0 also raises auto-settlement limits to ₹5 lakh and removes employer attestation requirements for most claims.
Members will be allowed to withdraw their EPF balance through UPI, with funds credited directly to a linked bank account, up to a cap of 75% of the total EPF balance. The withdrawal facility integration is being built with the National Payments Corporation of India, with support across various UPI apps.
Members will also be able to use a dedicated EPFO ATM card and get claims auto-settled without manual intervention for amounts up to ₹5 lakh. Auto-settlement for claims up to that amount will be processed automatically without manual verification, provided the member's UAN is KYC-compliant i.e. Aadhaar, PAN and bank details are verified.
Instant UPI access removes the long wait typically associated with advance claims for medical emergencies, housing, or education. Testing of the UPI and ATM withdrawal facility has been completed, though an official launch date has not yet been confirmed publicly.
