EPFO to introduce UPI and ATM-based PF withdrawals

The Employees' Provident Fund Organisation (EPFO) is implementing significant digital and policy reforms. Under the ‘EPFO 3.0’ initiative, the organization aims to allow its 75 million active subscribers to withdraw provident fund (PF) amounts via Unified Payments Interface (UPI) and UPI-enabled ATMs. This system, currently being tested with various banks, is expected to be formally introduced by late December.

To ensure retirement security, the new UPI-based withdrawal system will allow subscribers to access a maximum of 75% of their total PF balance, while a mandatory 25% must remain locked in the account. Additionally, the limit for automatic claim settlements for KYC-verified accounts is being increased from ₹1 lakh to ₹5 lakh, allowing for faster processing without human intervention.

Separately, the government has updated the mandatory EPF coverage salary limit, increasing it from ₹15,000 to ₹25,000 per month, effective September 17, 2026. This change is expected to bring over 5.1 million additional employees under social security coverage. While the salary limit has changed, eligibility for the Employees' Pension Scheme (EPS) depends on whether an individual was already a member; existing members with salaries above ₹25,000 may maintain their membership.