Accessing provident fund savings is set to become much simpler for millions of salaried employees. From April, Employees’ Provident Fund (EPF) subscribers may be able to withdraw their funds directly into their bank accounts using the Unified Payments Interface (UPI), eliminating the need to file withdrawal claims.
The proposed system aims to speed up access to money, reduce paperwork, and offer a more bank-like experience, allowing members to transfer eligible balances seamlessly and securely.
EPFO UPI Withdrawal April
The labour ministry is developing a system under which a portion of an employee’s provident fund will remain locked in, while a substantial share can be withdrawn directly into linked bank accounts through the Unified Payments Interface (UPI), sources told PTI.
Subscribers will be able to complete transactions using their registered UPI PIN, ensuring secure transfers to their bank accounts. Once credited, the funds can be freely used for digital payments or withdrawn as cash through bank ATMs using debit cards.
According to the source, the Employees’ Provident Fund Organisation (EPFO) is addressing technical issues to ensure the smooth rollout of the facility, which is expected to benefit nearly eight crore members.
How Can EPF Be Withdrawn Without Filing Claims?
Currently, EPFO members are required to submit withdrawal claims to access their provident fund savings, a process that often proves time-consuming.
Under the auto-settlement system, these withdrawal requests are processed electronically without manual intervention and are cleared within three days of submitting the application. The ceiling for auto-settled claims has already been increased to Rs 5 lakh from the earlier limit of Rs 1 lakh.
This move enables a large number of subscribers to access their EPF funds within three days for purposes such as medical treatment, education, marriage, and housing. The EPFO, which has around eight crore members, first rolled out online auto-settlement of advance claims during the COVID-19 pandemic to offer swift relief to those facing financial stress.
Despite this, members are still required to file claims to withdraw their own EPF money.
How Will New EPF Rules Benefit Members?
The proposed EPF rule system is being developed to do away with the lengthy withdrawal process and ease the workload of the EPFO, which settles over five crore claims every year, most of them related to EPF withdrawals.
According to the source, EPFO cannot permit direct cash withdrawals from provident fund accounts as it does not hold a banking licence. However, the government is keen to upgrade EPFO services to match those offered by banks.
In October 2025, the EPFO’s top decision-making body, the Central Board of Trustees (CBT), approved the simplification and liberalisation of rules governing partial EPF withdrawals. These changes are expected to be notified soon, following approval of the meeting minutes by Union Labour Minister Mansukh Mandaviya.
As part of efforts to improve the ease of living for EPF members, the CBT decided to consolidate 13 complicated withdrawal provisions into a single, simplified framework. The revised rules are grouped under three categories, Essential Needs such as illness, education and marriage; Housing Needs; and Special Circumstances.
Under the new provisions, members will be allowed to withdraw up to 100 per cent of their eligible provident fund balance, including both employee and employer contributions.
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Manisha Chauhan is a passionate journalist with 3 years of experience in the media industry, covering everything from trending entertainment buzz and celebrity spotlights to thought-provoking book reviews and practical health tips. Known for blending fresh perspectives with reader-friendly writing, she creates content that informs, entertains, and inspires. When she’s not chasing the next viral story, you’ll find her diving into a good book or exploring new wellness trends.
