In May, Union Labour and Employment Minister Mansukh Mandaviya had announced that EPFO was testing the UPI payment gateway and that the facility would be launched after successful completion of the exercise.

A senior EPFO official confirmed that testing has now been completed. “We have successfully tested the facility that allows members to withdraw EPF through the UPI payment gateway. The approved amount will be transferred directly to the member’s bank account,” he said.

EPFO’s Digital Transformation Programme

The new system is a key component of EPFO’s digital transformation programme aimed at simplifying fund access and improving member services. Officials said the upgraded framework is designed to reduce withdrawal processing time from several days to near-instant transfers, while eliminating paperwork and manual interventions.

At present, EPF withdrawal claims typically take seven to ten days for processing. Claims exceeding Rs 1 lakh often require additional verification, while discrepancies in documents can lead to delays or rejection. The new platform seeks to address these bottlenecks by enabling a seamless, paperless withdrawal process without the need for employer approvals in most cases.

UMANG App

The facility will be available through the UMANG app, where subscribers will be able to view their withdrawal eligibility and transfer approved amounts directly to their linked bank accounts. Once credited, members can use the funds for any permitted purpose.

Officials said the UPI-enabled system will allow subscribers to access eligible PF funds quickly for needs such as medical treatment, education, marriage and housing. While the transfer process will be instantaneous, withdrawals will remain subject to existing EPF rules and eligibility conditions.

To safeguard retirement savings, a portion of the corpus will continue to remain locked. According to officials, at least 25 per cent of the total PF balance will be retained in the account, while only the eligible portion — typically between 50% and 75% of the balance, depending on the category of withdrawal—can be accessed through UPI or other digital channels. The app will display the amount available for withdrawal in real time.

To use the facility, members must have an active Universal Account Number (UAN) with Aadhaar and PAN linked and verified. Personal details, including name and date of birth, must match across EPFO and Aadhar records.

The EPFO is also integrating its services with a WhatsApp chatbot, allowing subscribers to check account balances, withdrawal eligibility and other PF-related information through simple messaging.