The market buzz is accurate. Multiple leading news agencies, including The Times of India and The Economic Times, have reported that the Employees' Provident Fund Organization (EPFO) is set to launch a revolutionary UPI-based withdrawal facility starting April 1, 2026.
This move is part of the larger EPFO 3.0 IT upgrade, aiming to make PF withdrawals as simple as a bank transfer. However, this convenience comes with a major new condition regarding your Minimum Balance.
Here is the authentic breakdown of the data and figures based on the latest media reports.
1. The Big Change: Instant Credit via UPI
Source: The Times of India / PTI (Jan 16, 2026)
Currently, PF claims are settled via NEFT, which can take 1–3 days. From April 2026, EPFO will leverage the Unified Payments Interface (UPI) infrastructure.
How it works: You will likely see your "Eligible Balance" on the portal/app. Instead of waiting days for approval, you can authorize a transfer using your UPI PIN.
The Benefit: Money will be credited to your bank account almost instantly (or within hours), bypassing bank holidays and weekends.
Technical Requirement: Your UAN, Bank Account, and Mobile Number must be perfectly synced for UPI to work.
2. The New "25% Minimum Balance" Rule
Source: The Economic Times / Business Today
This is the most critical figure you need to know. While liquidity is increasing, EPFO wants to ensure you don't empty your retirement nest egg completely.
The Rule: A provision has been approved to earmark 25% of your total contributions as a mandatory "Minimum Balance".
Withdrawal Limit: You can withdraw up to 100% of the eligible balance (which effectively means the remaining 75% of your corpus).
Why? To ensure the account remains active and continues to earn the high interest rate (currently 8.25%) and compounding benefits.
3. Simplification: 13 Categories Merged into 3
Source: The Times of India
Previously, if you wanted to withdraw money, you had to choose from complex Para 68 sub-sections (68J for illness, 68K for marriage, etc.). This often led to rejections due to wrong category selection.
From April 2026, these 13 provisions are merged into 3 Broad Categories:
Essential Needs: (Illness, Education, Marriage)
Housing Needs: (Buying house, plot, or repayment of loan)
Special Circumstances: (Unemployment, Natural Calamity)
4. Enhanced Auto-Settlement Limit: ₹5 Lakhs
Source: Ministry of Labour & Employment / ET (June 2025)
The "Auto-Claim Settlement" (AI-based processing without human intervention) has been a massive success.
Old Limit: Claims up to ₹1 Lakh were auto-settled.
New Limit: The limit has been hiked to ₹5 Lakhs.
Impact: If your UPI withdrawal request is under ₹5 Lakhs and falls in the "Essential Needs" category (like illness/education), the system is designed to settle it electronically within 3 days (often much faster with UPI).
5. What You Need to Do Before April 1
To use this facility seamlessly when it launches, verify these three things immediately:
UPI Activation: Ensure the bank account linked to your EPFO is active on a UPI App (PhonePe, GPay, BHIM).
Mobile Match: The mobile number in your Aadhaar, Bank, and UAN must be the same. If they are different, the UPI triangulation will fail.
Name Match: Your name on the UPI app/Bank must match your EPF records character-for-character.
Summary of Figures
| Feature | Old Rule | New Rule (April 2026) |
| Payment Mode | NEFT (1-3 Days) | UPI (Instant/Same Day) |
| Withdrawal Cap | Category specific | 100% of Eligible Balance |
| Minimum Balance | No specific rule | Mandatory 25% Retention |
| Auto-Settlement | Up to ₹1 Lakh | Up to ₹5 Lakhs |
| Claim Categories | 13 Complex Rules | 3 Simple Categories |
References & News Sources
For verification, you can refer to the following reports from leading news agencies:
Business Today (Jan 16, 2026): EPFO news: UPI-based EPF withdrawals to start by April, aiming for streamlined access
Read Report
The Economic Times (Jan 09, 2026): PF withdrawal to be eased: Soon, EPFO may allow advance claims via BHIM app
Read Report
Ministry of Labour & Employment (Press Release): EPFO Enhances Auto-Settlement Limit for Advance Claims to ₹5 Lakhs
Read Official Release
Disclaimer: This article is based on reports from The Times of India and The Economic Times dated Jan 16-17, 2026 for informational purpose only. Final statutory notification from EPFO is awaited.
By Mit - A HR Professional
You may also like to read : EPFO Reforms 2025: From Red Tape to Real-Time Liquidity
No comments:
Post a Comment