New EPFO app to allow direct, paperless PF withdrawals to bank accounts using UPI, likely from April 1, 2026.
Members can withdraw up to 75 per cent of their EPF balance, with at least 25 per cent locked for retirement security.
No claim filing needed for eligible withdrawals; trials show quicker access and reduced pressure on EPFO systems.
The Employees’ Provident Fund Organisation (EPFO) is preparing to launch a new mobile application that could change how millions of salaried workers access their retirement savings. Expected to be rolled out on April 1, 2026, the app will allow EPFO subscribers to withdraw eligible portions of their provident fund directly into their bank accounts using UPI. The move aims to make fund access faster, simpler and fully digital, reducing paperwork and long waiting periods. Officials say the initiative is part of a broader effort to modernise EPFO services and bring them closer to the ease offered by banks, while still protecting long-term retirement savings nationwide.
SurveyUnder the proposed system, a portion of the EPF balance will remain locked to ensure retirement security, while the rest can be withdrawn instantly through the app. Officials said at least 25 percent of the total balance will stay frozen, allowing members to withdraw up to 75 percent under normal conditions. In cases of job loss, the remaining balance can be accessed only after a year, as per existing rules.
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The app will show members the exact amount they are eligible to withdraw. Transfers will be completed using the user’s linked bank account and UPI PIN, removing the need to file traditional withdrawal claims. Initial discussions suggest a per-transaction limit of Rs 25,000, though final limits may vary once the system goes live.
Currently, EPFO members must submit online claims through the UAN portal or the UMANG app, even under the auto-settlement mode. While auto settlement has reduced processing time to about three days for claims up to Rs 5 lakh, it still requires an application. The new UPI-based system is expected to cut this step altogether for eligible withdrawals.
The labour ministry has already conducted trial runs using around 100 dummy accounts to test security and technical stability. Officials said the feedback from these trials has been encouraging. Existing platforms like the UAN portal and UMANG app will continue to operate for other services such as passbook checks and profile updates. With more than 7.5 crore active contributors and a corpus nearing Rs 26 lakh crore, EPFO handles over five crore claims every year, and by enabling faster withdrawals, the government hopes to reduce pressure.
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Bhaskar Sharma
Bhaskar is a senior copy editor at Digit India, where he simplifies complex tech topics across iOS, Android, macOS, Windows, and emerging consumer tech. His work has appeared in iGeeksBlog, GuidingTech, and other publications, and he previously served as an assistant editor at TechBloat and TechReloaded. A B.Tech graduate and full-time tech writer, he is known for clear, practical guides and explainers. View Full Profile
