UPI Withdrawal: If you’re one of the 80 million EPFO subscribers who struggle with lengthy paperwork and weeks of waiting to withdraw your PF funds, the year 2026 brings a silver lining for you. The central government is now launching the EPFO UPI Withdrawal facility, which will allow you to transfer a portion of your Provident Fund directly to your bank account via UPI. This feature, scheduled to launch by April 2026, will not only save time but also ensure safe access to funds in times of emergency.
Hassle of filing a claim is over now
Currently, if an employee needs to withdraw an advance or the full amount from their PF account, they must visit the EPFO portal and file a claim online. While the current auto-settlement system now takes approximately three days, the introduction of UPI will make this process even faster.
The Ministry of Labor is working on a system where a certain portion of your EPF funds will be “blocked” to preserve them for your retirement, while the remaining amount can be transferred directly to your bank account using your UPI PIN.
How will this EPFO UPI system work?
Using this new technology will be as easy as making a payment at a store, as subscribers will be able to see on their app or portal how much they are eligible to withdraw through UPI. To transfer money, you will need to use the UPI PIN associated with your bank, and once you enter the PIN, the amount will be credited to your linked bank account.
You can then use the money for e-payments or ATM withdrawals as you wish. This facility will also prove to be a significant relief for the EPFO, as it will significantly reduce the department’s burden of processing over 50 million claims annually.
Auto-Settlement and ₹5 Lakh Limit
EPFO has already increased the claim settlement limit from ₹1 lakh to ₹5 lakh to ensure faster access to funds for essential needs like medical, education, and marriage. The current auto-settlement system delivers funds directly to your account without any human intervention, but with the introduction of UPI, you will be completely free from the formality of filling out claim forms.
Although EPFO does not have a banking license and cannot directly withdraw funds, the government is adopting this new approach to provide a banking-like experience to its services.