The Employees' Provident Fund Organisation (EPFO) is set to roll out a major digital push by April 2026, allowing subscribers to transfer their EPF balance
directly to their bank accounts using the Unified Payments Interface (UPI), according to a PTI report citing a top source. This move is expected to simplify withdrawals and enhance the convenience of accessing retirement savings for millions of members. The source explained in the report that a portion of the EPF will remain frozen, while a large part will be made available for direct transfer to members’ seeded bank accounts. Subscribers will be able to view the eligible balance and complete the transfer securely using their linked UPI PIN, ensuring a safe and instant movement of funds. Once the amount is transferred, members can use the money for various purposes, including electronic payments or ATM withdrawals via debit cards. The new system aims to provide the same convenience as banking services while retaining the high interest and compounding benefits of the EPF balance, added the report. Auto-Settlement Mode And Faster Access Currently, EPFO members must apply manually to withdraw funds, a process that can be time-consuming. The organisation already operates an auto-settlement system for claims under Rs 5 lakh (up from the previous Rs 1 lakh), which electronically settles claims within three days. This facility was first introduced during the COVID-19 pandemic to assist members in financial need. The new UPI-enabled mechanism is designed to further reduce the burden on EPFO, which settles over 5 crore withdrawal claims annually, and provide quick access to funds for illness, education, marriage, and housing purposes. Simplified Withdrawal Provisions In October 2025, the Central Board of Trustees (CBT) approved streamlining EPF partial withdrawal rules. Thirteen complex provisions have now been merged into three categories: Essential Needs (illness, education, marriage), Housing Needs, and Special Circumstances. Members will be able to withdraw up to 100 per cent of the eligible balance, with 25 per cent earmarked as a minimum balance to maintain the retirement corpus and ensure compounding interest benefits. The initiative promises zero-documentation, full auto-settlement, and greater flexibility, aligning EPFO services closer to banking standards.
