EPF withdrawals via ATM, instant UPI as EPFO 3.0 likely to roll out in June 2025

The Employees' Provident Fund Organisation (EPFO) plans to change how millions of employees withdraw their provident fund (PF) funds. It is likely that from June 2025, EPF members will be able to withdraw PF funds instantaneously via UPI and ATMs, eliminating the lengthy and methods of the past, according to the DD news.

This initiative is being implemented with the support of the Ministry of Labour and Employment and has received approval from the National Payments Corporation of India (NPCI). EPF members will also be able to check their PF balance directly on UPI platforms and transfer funds to their preferred bank accounts without delays.

Also read: EPF changes in 2025: New form to transfer EPF account, instant UAN activation, other announcements made by EPFO that you need to know

Withdrawing EPF funds instantly under EPFO 3.0

Currently, Withdrawing PF funds involves submitting online claims and waiting for approvals from field offices of EPFO. This can take several days or even weeks. However, with the upcoming UPI integration and withdrawal facility via ATM, EPF withdrawal settlement will become instant and hassle-free.

Gone are the days of submitting online claims and waiting days or even weeks for PF withdrawals. With the new UPI integration, EPFO members can withdraw up to Rs 1 lakh instantly, making funds readily available during emergencies. According to Sumita Dawra, Secretary at the Ministry of Labour and Employment, this update allows employees to check their PF balance directly on UPI platforms and transfer funds to their bank accounts without delays, as per DD report.

Expanded reasons for PF Withdrawals
Currently, EPF scheme allows withdrawals for medical emergencies, Housing (e.g., home purchases or renovations), Education (e.g., funding higher studies), Marriage (e.g., wedding expenses). However, to make the EPF withdrawal, an EPF member is required to fulfill certain criteria. Once the specific conditions are met, KYC and other documents are in order, only then EPFO successfully settles the claim.

This proposal to expand the EPF withdrawal scope ensures that employees can tap into their PF savings for critical life events, making the system more responsive to their needs. This step aims to give more financial flexibility to employees. “EPFO has made significant improvements in its digital infrastructure by integrating over 120 databases,” Dawra said.

“These efforts have reduced claim processing time to just three days, with 95 per cent of claims now being processed automatically. Further upgrades are also in progress to make the system even more efficient,” she stated.

Pension changes for EPFO from January 1, 2025

Pensioners covered by the Employees' Pension Scheme (EPS) of 1995 will be able to access their pension from any bank branch in India as of January 1, 2025. This means that retirees can obtain their benefits from any bank or branch in India.

Additionally, even in the event that a pensioner relocates or switches banks or branches, the CPPS will guarantee pension delivery across India without requiring the transfer of Pension Payment Orders (PPO) from one office to another.