In a major digital push aimed at simplifying access to provident fund savings, the Employees’ Provident Fund Organisation (EPFO) is set to launch a new mobile application in April that will allow members to withdraw a portion of their EPF balance directly into their bank accounts using the UPI payment gateway.
The move is expected to benefit over 8 crore EPFO subscribers across India by significantly reducing the time and paperwork involved in filing withdrawal claims. The Ministry of Labour and Employment is currently conducting trial runs before the nationwide rollout.
What Is Changing for EPFO Members?
At present, EPFO members must file online claims through the UAN portal or the UMANG app to access their EPF money. Even with the auto-settlement system, the process can take up to three days.
With the new EPFO app, members will be able to transfer eligible EPF funds instantly to their bank accounts using their linked UPI ID and UPI PIN, without going through the traditional claim filing process.
How the UPI-Based EPF Withdrawal Will Work
The upcoming app will show subscribers the “eligible EPF balance” available for withdrawal. Members can then authenticate the transaction using their UPI PIN, and the amount will be credited directly to their seeded bank account within minutes.
This system ensures secure, fast, and seamless fund transfers while reducing the administrative burden on EPFO, which handles over 5 crore withdrawal claims every year.
Key Features of the New EPFO Mobile App
Instant Transfers via UPI:
Subscribers can move funds to their bank accounts almost instantly using UPI, bypassing lengthy claim procedures.
Withdrawal Cap Per Transaction:
Initial discussions suggest a likely cap of ₹25,000 per transaction for UPI-based withdrawals.
Balance Segregation for Safety:
The app will maintain retirement security by keeping at least 25% of the total EPF balance locked, while the rest will be shown as eligible for withdrawal.
Passbook and Other Services:
Members can also check their EPF passbook, balance, and other services through the app.
Integration With BHIM and Other UPI Apps:
The facility will work seamlessly with BHIM and other UPI platforms.
Existing Platforms Will Continue
The EPFO Unified Member Portal and UMANG app will remain operational. The new mobile application will serve as a dedicated platform primarily for faster withdrawals and improved accessibility.
Trials Underway Before April Launch
EPFO is currently testing the system using 100 dummy accounts to eliminate technical glitches. The government is planning a formal launch with wide publicity in April.
Why This Is a Big Reform for Salaried Employees
EPFO cannot function like a bank as it does not hold a banking licence. However, this UPI integration is aimed at making EPFO services as efficient and user-friendly as banking services.
The reform is expected to particularly help members needing urgent funds for illness, education, marriage, or housing, areas already covered under EPFO’s auto-settlement scheme, where the limit has been raised to ₹5 lakh.
With this digital upgrade, accessing EPF savings may soon become as simple as making a UPI payment.
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Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
