A major digital revamp for the Employees’ Provident Fund Organisation (EPFO) is set to take place with the rollout of EPF 3.0. The new system is reportedly expected to be introduced later this year with the objective to speed up withdrawals, cut delays and improve transparency.
The move is part of EPFO’s broader push to modernise its systems and bring them closer to banking standards.
EPF withdrawals via UPI likely from April
One of the major changes to be introduced is the withdrawals of funds through the Unified Payments Interface (UPI). Once implemented, EPFO subscribers will be able to withdraw their EPF directly into their bank accounts using UPI.
The facility is expected to be launched by April this year, according to a senior labour ministry official quoted by PTI. Members will be allowed to withdraw a substantial portion of their EPF balance instantly. A part of the corpus will remain frozen to protect retirement savings, the PTI report stated.
Speaking at ABP Network’s India @2047: Entrepreneurship Conclave in December last year, Labour and Employment Minister Mansukh Mandaviya said that EPFO subscribers are already allowed to withdraw up to 75% of their provident fund balance without citing any reason.
He added that maintaining the remaining 25% as a minimum balance is aimed at ensuring long-term retirement security.
Steps to withdraw EPF via UPI
Step 1: Activate your Universal Account Number (UAN) if not done already and link it with Aadhaar, PAN and your bank account on the EPFO portal
Step 2: Make sure your bank account linked with EPFO is also enabled for UPI transactions
Step 3: Access your EPFO account using your UAN and password
Step 4: The system will display the portion of your EPF balance available for instant withdrawal via UPI (a part of the corpus will remain frozen)
Step 5: Choose UPI as the mode of withdrawal instead of the traditional claim settlement process
Step 6: Specify how much you want to withdraw, subject to eligibility limits
Step 7: Confirm the transaction securely using your UPI PIN
Once authenticated, the amount will be transferred directly to your linked bank account, usually in real time. The credited amount can be used for digital payments or withdrawn as cash using your debit card. Please note that the above-mentioned steps are as per source-based media reports. The actual method of withdrawal may vary.
Fixing glitches, faster settlements
According to the PTI report, the labour ministry official said EPFO is working to fix software-related issues ahead of the rollout. The upgrade is expected to benefit nearly eight crore EPFO members. Many of them currently depend on a slow claims process to access their funds.
EPFO has also expanded its auto-settlement facility. Under this system, eligible withdrawal claims are settled electronically within three days. No manual intervention is required. The limit under auto-settlement has been increased to Rs 5 lakh from Rs 1 lakh, the report stated.