New Delhi: In a major step towards faster and more convenient access to retirement savings, Employees’ Provident Fund (PF) members may soon be able to withdraw their funds through UPI, with the new facility expected to roll out from April. The initiative is aimed at simplifying PF withdrawals and drastically reducing settlement delays.
Under the proposed system, members will be able to transfer PF money instantly to their bank accounts using a UPI PIN. To support this service, the Employees’ Provident Fund Organisation (EPFO) is preparing to launch a dedicated mobile application. Each UPI transaction will allow withdrawals of up to ₹25,000.
The move is expected to benefit nearly eight crore EPFO members across the country. To safeguard post-retirement financial security, at least 25 per cent of the total PF balance will remain locked and cannot be withdrawn, while the remaining amount can be accessed based on individual needs.
Members will be able to use this facility for essential expenses such as medical treatment, education, marriage, and house construction. The primary objective of the reform is to shorten the time taken to process PF claims. As part of ongoing improvements, the government has already raised the auto-settlement limit from ₹1 lakh to ₹5 lakh.
Ahead of the nationwide rollout, the ministry is conducting pilot tests using 100 dummy accounts to ensure the system’s efficiency and reliability, paving the way for a smoother and more user-friendly PF withdrawal experience.
