EPFO may allow EPF withdrawal through UPI using new app from April

If you have an Employees’ Provident Fund (EPF) account, withdrawing money could soon become much faster and simpler — potentially as easy as making a UPI payment.

 

The Employees’ Provident Fund Organisation (EPFO) is preparing to launch a new mobile application in April that will allow subscribers to withdraw eligible EPF funds directly into their bank accounts using the UPI payment gateway, government sources told PTI.

 

The move is aimed at making EPF access more convenient for the organisation’s nearly 8 crore members, many of whom currently face a multi-step claim process to withdraw their own savings.

 

"The labour ministry is working on a project where a certain proportion of the EPF will be frozen, and a large chunk will be available for withdrawal through their bank account using Unified Payment Interface (UPI)," the source told PTI.

 

The source further said that the Employees' Provident Fund Organisation will roll out a new mobile phone application through which the member would be able to withdraw their EPF money using UPI gateway as well as avail other services like passbook balance.

 

What could change for EPF subscribers

 

Today, EPF withdrawals require members to:

 

• file a claim online through the UAN portal or UMANG app
• wait for processing and approval
• receive funds in their bank account after settlement

 

With the proposed system, subscribers may be able to:

 

• view their withdrawable EPF balance in the new mobile app
• transfer eligible funds directly to their linked bank account
• authenticate the transaction using a UPI PIN
• This could significantly reduce the time and effort required to access EPF savings.

 

Trials already underway

 

The EPFO is currently testing the system using dummy accounts to identify and fix technical issues before the official rollout. The new app is expected to complement — not replace — existing platforms like the UAN portal and UMANG app.

 

Members will still be able to check their EPF passbook balance and access other services through the new application.

 

Faster access to emergency funds

 

In recent years, EPFO has already been working to speed up withdrawals. During the pandemic, it introduced auto-settlement of advance claims, which allows eligible withdrawals to be processed electronically within three days without manual intervention.

 

The limit for auto-settlement has since been increased to ₹5 lakh, enabling quicker access to funds for:

 

• medical emergencies
• education
• marriage expenses
• housing needs

 

However, members still need to submit withdrawal claims — a process the new system aims to simplify further.

 

Why EPFO is making this change

 

Each year, EPFO processes over 5 crore claims, most of them related to withdrawals. Simplifying the process could reduce administrative workload while improving the experience for subscribers.

 

Officials told PTI the organisation cannot allow direct withdrawals from EPF accounts like a bank because it does not hold a banking licence. Instead, the new system will transfer funds securely to members’ bank accounts through UPI.

 

The broader goal is to make EPF services as accessible and efficient as modern banking platforms, while maintaining security and compliance safeguards.  wITH INPUTS FROM pti