The Employees' Provident Fund Organisation (EPFO) has tied up with 32 public and private sector banks so that the employers can directly pay the PF contributions to the banks to reduce the PF claim processing time. The system was expected to be launched as part of reforms in 2026, allowing UPI-based withdrawals, faster verification, and automated approvals for eligible claims.

However, there are several technical challenges in UPI-EPFO linkage and ATM linkages, which have caused a delay in the implementation of the proposal. 

A key technical challenge is linking a user's UPI ID to the EPFO system, which is currently Aadhaar-based.

This requires an additional, secure integration layer with banking infrastructure readiness, sources pointed out. The system requires seamless, real-time integration between EPFO databases and numerous public and private sector bank ATMs to enable instant withdrawals.

EPFO Mode

Moreover, "EPFO Mode" needs to be set up at designated ATMs. This requires specific software updates and API integration, separate from standard debit card operation.

While trials are underway, the full implementation requires official gazette notifications, causing delays.

The rollout is planned in phases. This means that it may not be available to all subscribers simultaneously across the country.

Easing Withdrawals 

PF balance withdrawals through UPI and ATMs will eliminate the hassle of visiting banks or the EPFO offices to access funds.

Sources said subscribers may be able to withdraw up to 75% of their total EPF balance instantly through ATMs or UPI by simply stating the reason for withdrawal. The reasons for these withdrawals can be medical emergencies, home construction, or periods of unemployment.

As per the proposed move, the ATM card can be used like a bank debit card to withdraw cash from the EPF balance when needed.

Enabling ATM-based withdrawals increases risks such as card skimming, unauthorised usage, and the installation of hidden cameras to steal PINs; banks would need to formulate fool proof roll out.

While faster payouts are the goal, creating a robust, secure authentication system, which may be biometric or OTP-based, to prevent unauthorised access to high-value retirement savings is critical.

It is understood that the government may impose a limit on withdrawal for these funds in respect of each of the reasons allowed.  

Last year, the EPFO Board approved liberalised partial withdrawal rules, allowing members to withdraw up to 100% of their EPF balance. The move is aimed at improving the ease of access and flexibility for over seven crore subscribers.

Essential Riders

The EPFO may limit the maximum limit of withdrawing the EPF balance using UPI or ATM to 50% of the total amount in the account.

It is expected to help members save the remaining balance and use it in an emergency situation. Special ATM cards may be introduced for members, allowing them to withdraw money directly through ATMs.

These PF withdrawal cards will be linked to the PF account of the account holders. EPFO members need to meet certain eligibility criteria to be able to withdraw PF money.

To be able to utilise this service, members must have an active Universal Account Number (UAN). The mobile number and UAN must be in an active condition. Moreover, the UAN must be linked with KYC documents such as Aadhaar, PAN, account number, and IFSC code.

What Is EPF

The EPF is a mandatory government-backed savings scheme for salaried employees, designed to provide retirement security. Administered by the EPFO, both employees and employers contribute 12% of the basic salary (plus dearness allowance) monthly, earning a fixed, tax-favoured interest rate.

Enrolling in EPF is mandatory for organisations with 20 or more employees, and employees earning under ₹15,000 per month must join. While employees contribute 12%, the employer contributes 12%.