EPFO New Rule: The Employees’ Provident Fund Organization (EPFO) is taking a major step towards providing relief to employees in the digital age. As part of the EPFO 3.0 upgrade, a new mobile app is planned to be launched by April 2026, with the primary objective of making the PF withdrawal process simple, fast, and completely digital. This initiative is expected to directly benefit approximately 80 million PF members across the country.
Direct Transfer to Bank Account via UPI
Once the new system is implemented, PF members will be able to receive funds instantly in their linked bank accounts via UPI. Currently, PF withdrawals require filing an online claim, uploading documents, and waiting for several days for processing. In the proposed app, users will simply log in, select the amount, and enter their UPI PIN. The agreed amount will then be transferred directly to their bank account. This will make the process more transparent and faster.
How much can be withdrawn at a time?
According to media reports, a withdrawal limit of approximately ₹25,000 may be set. However, the entire PF balance will not be allowed to be withdrawn at once. At least 25 percent of the total deposit will be reserved for retirement security. This aims to ensure that employees have sufficient savings for the future.
Two types of balances will be visible in the app
The PF balance will be displayed in two parts in the new mobile app.
The first will be the eligible balance, which members can withdraw immediately.
The second will be the locked balance, which will be protected until retirement.
This clear division will make it easier for members to understand how much they can withdraw for immediate use and how much savings are preserved for the future.
Increased auto-settlement limit
EPFO has also upgraded the claim settlement process. Now, claims up to ₹5 lakh can be settled electronically within three days without manual verification. Previously, this limit was up to ₹1 lakh. This faster process will prove extremely useful for employees in need of medical assistance, education, marriage, or housing.
Integration with BHIM and other UPI platforms
The new app will be integrated with BHIM and other major UPI platforms, providing users with a banking app-like experience. Extensive testing of the system is underway before launch to minimize the possibility of technical issues. This aims to provide a secure and seamless service to users.
Step Toward a Digital Future
The PF withdrawal experience is expected to change completely after April 2026. UPI-based transfers, clear balance information, and faster claim settlement will provide significant relief to employees. This EPFO 3.0 initiative is being seen as a significant shift towards digital convenience and transparency for employees.
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