No forms, no waiting: EPF money could be withdrawn via UPI by April 2026?

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 UPI

By April 2026, nearly eight crore EPFO members may be able to withdraw their provident fund money instantly through UPI, cutting out paperwork, long waits, and claim tracking that workers have struggled with for years,  a top source has told news agency PTI.

 

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.

 

Subscribers will be able to see the eligible EPF balance available for transferring into their seeded bank accounts. They will be allowed to use their linked UPI pin for completing the transaction to ensure a secure transfer of money into their bank accounts, the source told PTI. 

 

 

Once the money is transferred into bank accounts, the members can use the money the way they want, like making payments electronically or withdrawing through bank ATMs using debit cards.

 

From forms to phone taps: what’s changing?

 

Right now, accessing your own EPF money involves filing a withdrawal claim and waiting days (sometimes weeks) for processing. Even under the faster auto-settlement route, you still need to apply formally.

 

The new system being developed by the labour ministry aims to change that entirely.

 

Under the proposed framework:

 

• A portion of your EPF balance will be “frozen” for retirement
• The remaining eligible amount will be available for instant withdrawal
• You’ll be able to see this withdrawable balance clearly
• Transfers will happen directly into your bank account via UPI
• You’ll approve the transaction using your UPI PIN
• Once the money hits your bank account, you can spend it, transfer it, or withdraw cash—just like any other bank balance.

 

Why this matters to everyday earners

 

For millions of workers, EPF is often the only large pool of savings they have. But accessing it has traditionally been slow, bureaucratic, and stressful—especially during emergencies.

This UPI-based system changes the experience in three major ways:

 

Speed

No claims. No follow-ups. No waiting. Withdrawals could become near-instant.

 

Visibility

Members will clearly see how much of their EPF is eligible for withdrawal at any time.

 

Control

Once transferred, EPF money works like regular cash—usable for medical bills, education fees, weddings, or housing needs.

 

What about retirement savings—will they be protected?

 

Yes, and this is a crucial part of the design.

 

To prevent people from draining their retirement corpus entirely, EPFO plans to:

 

• Mandate a minimum balance of 25% of total contributions to stay invested
• This ensures members continue earning EPFO’s 8.25% annual interest, with compounding benefits
• Both employee and employer contributions will be counted in the eligible balance calculation
• In short, the system gives flexibility without sacrificing long-term retirement security.

 

Easier rules, fewer categories, zero paperwork

 

Alongside the UPI rollout, EPFO has also simplified withdrawal rules dramatically.

 

Earlier, there were 13 separate provisions for partial withdrawals. These have now been merged into three simple categories:

 

• Essential needs (illness, education, marriage)
• Housing needs
• Special circumstances

 

Members can now withdraw up to 100% of the eligible balance, subject to the minimum retained amount. Importantly, the new framework removes the need for supporting documents and enables fully automated settlement.

 

Provision has been made for earmarking 25 per cent of the contributions in the Members' account as Minimum Balance to be maintained by the member at all times. This will enable the member to enjoy a high rate of interest offered by EPFO (presently 8.25 per cent pa), along with compounding benefits to accumulate a high-value retirement corpus.

 

This rationalisation enhances ease of access while ensuring members maintain a sufficient retirement corpus.

 

Scheme provision simplification, along with greater flexibility and zero need for any documentation, will pave the way for 100 per cent auto settlement of claims for partial withdrawal and ensure ease of living.  wITH INPUTS FROM pti