Starting in April 2026, the Employees’ Provident Fund Organisation (EPFO) will launch the EPFO 3.0 system, allowing approximately 8 crore subscribers to withdraw funds instantly via UPI apps (such as Google Pay, PhonePe, and Paytm) and select integrated ATMs. This new digital-only approach eliminates the need for employer approvals and multiple paper forms, replacing a process that previously took weeks with a system where 72% of claims are automatically cleared.
To use this system, members must link their EPF account to their Aadhaar and bank account. Once linked, a user can initiate a withdrawal through the EPFO portal or an ATM, authenticating the transaction using their UPI PIN or biometric data. Funds are then credited to the linked bank account in real-time.
The new policy streamlines withdrawal rules for various life events and emergencies:
- Marriage & Education: Members can make up to 5 withdrawals for weddings and 10 for education throughout their careers.
- Emergencies: Instant withdrawals of up to 5 lakh are permitted for urgent needs.
- Withdrawal Limits: Members can access up to 75% of their total balance.
A critical feature of the reform is balance protection. To ensure members do not exhaust their retirement savings prematurely, 25% of the EPF balance must remain in the account. This retained portion continues to earn an annual interest rate of 8.25%.
While the system promises greater flexibility and accessibility, its full rollout depends on resolving technical glitches identified during pilot runs to ensure stable integration. Security remains a priority, utilizing existing UPI authentication protocols to protect member transactions.