EPFO to launch new app allowing PF withdrawal through UPI

The Employees' Provident Fund Organisation (EPFO) is preparing to roll out major reforms to make provident fund withdrawals faster, easier and more technology-driven for subscribers.

According to news agency reports quoting a senior official from the Labour Ministry, a new mobile application is expected to be launched in April, allowing EPFO members to withdraw PF money directly into their bank accounts through the Unified Payments Interface (UPI). Once implemented, this move is likely to significantly reduce reliance on the time-consuming claim-filing process.

The report said the Labour Ministry is working on a model under which a portion of the EPF balance will remain reserved or “frozen”, while the remaining amount will be readily available for withdrawal as and when required. Subscribers will be able to access this withdrawable portion instantly through the new app using UPI. Existing platforms such as the UAN portal and the UMANG app will continue to function as usual even after the new app is introduced.

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Auto-settlement, higher limits and faster access to EPF

Subscribers will be able to complete transactions using their linked UPI PIN, allowing money to be transferred securely to their bank accounts. Sources said the EPFO is currently running trials with 100 dummy accounts to strengthen the system and fix any technical issues before launch. The Labour Ministry is expected to unveil the new app with much fanfare in April.

At present, EPFO members must submit withdrawal claims to access their EPF funds, a process that often takes time. Under the auto-settlement system, claims are processed electronically without manual intervention and are settled within three days of submitting the application.

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The withdrawal limit under this auto-settlement mode has already been increased to ₹5 lakh from the earlier ₹1 lakh. This enables a large number of EPFO members to access funds quickly for needs such as illness, education, marriage and housing. EPFO, which has around 8 crore members, first introduced online auto-settlement of advance claims during the COVID-19 pandemic to provide faster financial relief to subscribers.

The upcoming app will allow subscribers to view their bank account-linked EPF balance and clearly indicate how much money is eligible for withdrawal. Transactions will be completed using UPI PINs, ensuring both speed and security, with funds credited directly to bank accounts. At present, the system is undergoing trial runs using 100 dummy accounts to detect and fix any technical glitches before the full-scale rollout.