UPI, ATM can be used for PF withdrawals from June onwards

EPFO is expanding withdrawal options beyond instant access, enabling members to use funds for essential needs while supporting the government’s vision of financial security and flexibility for employees

In a significant move to enhance financial accessibility and digital banking convenience, the Employees' Provident Fund Organisation (EPFO) is set to roll out a new facility enabling Provident Fund (PF) withdrawals through the Unified Payments Interface (UPI). This initiative, approved by the Ministry of Labour and Employment, is expected to revolutionize the way employees access their retirement savings, ensuring seamless transactions and financial independence.

Sumita Dawra, Secretary of the Labour and Employment Ministry, confirmed the upcoming facility, stating that by May or June, EPFO members will be able to withdraw funds directly via UPI and ATMs. This system will allow users to view their PF balance in real-time, transfer funds to their preferred bank accounts, and make instant withdrawals of up to ₹1 lakh, eliminating long waiting periods and paperwork. The integration of UPI-based withdrawals aims to make financial transactions more efficient and accessible to millions of employees nationwide.

“The EPFO has made significant strides in digital transformation, integrating over 120 databases to accelerate withdrawal processing. As a result, the claim settlement time has been drastically reduced to just three days, with 95% of transactions now automated. Further simplifications are in the pipeline,” Dawra said, emphasizing the organization's commitment to digital innovation.

Expanded benefits for EPFO members

Beyond instant withdrawals, the EPFO is expanding its withdrawal criteria, allowing members to access funds for essential needs such as housing, education, and marriage, in addition to the existing provisions for medical emergencies. This move aligns with the government’s broader efforts to provide financial security and flexibility to employees, ensuring they can utilize their savings as per their requirements without bureaucratic delays.

Pensioners are also set to benefit from the latest reforms. Since December 2024, over 78 lakh pensioners have gained the ability to withdraw funds from any bank branch, eliminating previous location-based restrictions. This change has provided retirees with greater financial autonomy and convenience, allowing them to access their pensions more easily, regardless of location.

With over 7.5 crore active members, EPFO continues to witness rapid expansion, enrolling 10–12 lakh new members every month across its 147 regional offices. The implementation of UPI-based withdrawals is expected to set a new benchmark in digital financial services, ensuring greater transparency, efficiency, and accessibility for India's workforce. This move is also expected to stimulate economic activity by increasing liquidity and spending power among employees and retirees.

Accelerating India's financial digitalization

The introduction of UPI and ATM-based PF withdrawals represents a landmark moment in India's digital finance sector. By integrating cutting-edge payment technologies, the initiative aligns with Prime Minister Narendra Modi’s vision of 'ease of living' for employees and employers alike. As the rollout approaches, the move is expected to significantly improve access to retirement savings, reinforcing the government's commitment to financial empowerment and security. Experts believe that such digitization efforts will enhance financial inclusion, reduce dependency on traditional banking channels, and create a more resilient economic framework.

As the EPFO gears up for the launch, stakeholders anticipate that this step will further enhance India's standing as a leader in digital finance, ultimately benefiting millions of working professionals across the country.