Withdrawal of Funds from PF via ATMs and UPI: Restrictions and Requirements

July 7, 16:41

Despite the promise of instant withdrawal, there are significant obstacles. Even with high payment processing speeds, applications can be rejected due to record errors. According to the EPFO's annual report, the rejection rate was 29% in 2021-22, which decreased to approximately 22% in 2024-25. Nevertheless, one in five applications is still rejected, posing a major barrier to ATM or UPI withdrawals.

Reasons for Application Rejection

Analysis of EPFO data shows that the primary reasons for delays or rejections are related not to technical issues but to administrative matters and record discrepancies. The new system cannot automatically resolve these shortcomings. The most frequent reason for refusal is a mismatch in the spelling of the member's name or middle name across Aadhaar, PAN, and EPFO records. Other factors leading to rejection include the absence of a Date of Birth (DOB) in both databases, incorrect linking or verification of bank details (IFSC), having more than one active Universal Account Number (UAN) for a member, and the failure of a former employer to update the Exit Date on the EPFO portal in a timely manner.

EPFO 3.0 Functionality and UPI

EPFO 3.0 is primarily a technical upgrade that transforms the country's regional databases into a unified, banking-like platform. The goal of this upgrade is to expedite the transfer of requirements and pension payments. Furthermore, the new system does not alter existing EPFO rules. Members will only be able to withdraw the amount they are entitled to under current regulations. It is planned to increase the automatic calculation limit to 500,000 rupees. This new scheme will utilize the National Payments Corporation of India (NPCI) networks and Aadhaar-based OTP authentication. However, it should be noted that the UPI-based function has not yet been launched, and its launch date remains undetermined.

Recommendations for Fund Members

Those preparing to withdraw PF funds are advised to adhere to several conditions. They must have only one active UAN. Personal details, such as name and date of birth, must be absolutely identical across all documents: Aadhaar, PAN, and EPFO. It is crucial to correctly update and link their bank account and IFSC code. Additionally, they should keep their registered mobile number active to receive Aadhaar OTPs. Finally, they must ensure that the Exit Date from previous employers is entered.

www.aajtak.inJuly 7, 07:43

EPFO announces 8.25% interest accrual on PF balances for 80 million members

Good news for approximately 80 million participants of the Employees' Provident Fund Organisation (EPFO): the amount in their PF accounts will be increased through interest accrual. EPFO has issued an order to accrue 8.25% interest on funds deposited in the organization's members' accounts.

Official Decision and Benefits

Following the official announcement of the 8.25% rate on contributions to the Employees' Provident Fund for the 2026 financial year, regional offices have been instructed to credit the interest amounts to the participants' accounts. According to the report, the Central Government approved, under section 60(1) of the EPF scheme, that the interest funds will be credited to each member's EPFO plan account for the years 2025-26. This was communicated in a recently released EPFO circular.

Acceleration of Fund Transfer Process

This important update from EPFO comes at a time when the pension fund manager has completed major work integrating databases and updating software over the past week. This creates an expectation that PF interest payments will be transferred to the accounts of millions of participants significantly faster than before. Thus, the process will no longer be slow, which previously could take one or two months to complete payments for all participants.

History of the Decision

EPFO participants had been expecting the interest credits to their accounts since the beginning of this year. The EPFO Central Board of Trustees approved the 8.25% rate for over 80 million EPFO clients for the 2026 financial year in March of this year. It should be noted that this is the third consecutive year that the PF interest rate has been maintained at this level. After approval, the proposal is sent to the Ministry of Finance for sanction, and the Ministry of Finance approved the interest rate in June of this year.

Ways to Check Accrued Interest

There are several ways to check the amount deposited in the EPF account. If your UAN and mobile number are registered with EPFO, you can get information about your account by sending just one SMS. Additionally, the status can be checked via the Umang App, the EPFO E-Service Portal, or the Missed Call Service.

Balance Checking Details

To check the PF balance via SMS, you need to send an SMS to the number 7738299899, writing EPFOHO and UAN, followed by the language you wish to receive the information in. For example, to get EPF account details in English, you need to enter EPFOHO UAN ENG. Then, the information about your PF account balance will be received via message. For online checking of the PF balance, open https://passbook.epfindia.gov.in/MemberPassBook/Login in your mobile phone or laptop browser, enter your UAN and password, and then fill in the captcha code. A new page will then appear where you can select your PF number from the drop-down list, after which your PF account details will be displayed. Through the UMANG app, you must first download the application, log in, go to the 'All Services' section, find EPFO, select the 'Employee-oriented services' option, click on 'View Statement', enter your UAN, and enter the OTP received on your registered mobile number, after which the balance will be displayed. You can also get complete information about the amount in the PF account by making a missed call to the number 9966044425 from your registered mobile number; after two rings, the automatic call will be disconnected, and the PF balance information will be sent to you via SMS.

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www.aajtak.inJune 26, 10:54

EPFO 3.0: Accelerated PF Payouts to 72 Hours and UPI Withdrawal Introduced

The EPFO 3.0 system is preparing for implementation, and the government has indicated that all new updates will be effective by the end of the current month. These changes aim to make pension fund (PF) management services simpler, faster, and more convenient for millions of customers, eliminating the need for long waiting periods when applying.

New Ways to Receive Funds

Employees can now receive funds from PF instantly via UPI or ATMs. This step is expected to significantly reduce paperwork, eliminate delays, and make the process of withdrawing funds from PF more comfortable for workers.

Core Changes in EPFO 3.0

EPFO 3.0 is a technology-driven service aimed at the complete automation and digitalization of provident fund services. Minister of Labour and Employment Mansukh Mandaviya recently announced that testing of the UPI withdrawal feature is complete, and this service will soon be launched, although an official start date has not yet been announced.

Fund Credit to Account

According to the minister, when using the new system, PF payouts will be credited directly to the bank accounts of fund members. Suresh Thakuri, HR head of Star Cement, noted that the new framework includes several important modifications intended to balance easy access to PF funds with ensuring long-term retirement benefits.

Acceleration and Simplification of Procedures

One of the most significant improvements is the simplification of the money retrieval process. Over 13 withdrawal categories have been consolidated into three main groups: urgent needs, housing, and emergencies, which will help members understand the procedure. Under these changes, the settlement period will be reduced to 72 hours.

Changes in Service Period Requirements

Another proposed change concerns lowering the minimum service period required for certain types of withdrawal. Workers will now be able to receive money after just one year of service for purposes such as marriage, higher education, or housing, whereas previously five or seven years of service were required in some cases.

Possibility of Full Withdrawal

Under the new structure, members facing emergencies may be allowed to withdraw up to 100% of the entitled amount, including employee and employer contributions. This could simplify receiving funds for departing employees. Additionally, workers may be permitted to withdraw up to 75% of their PF balance one month after losing their job.

Final Settlement Rules

Changes are also expected in the final settlement rules after resignation. While partial withdrawal may be available after one month, the waiting period for final settlement after job loss may be extended. Furthermore, a long waiting period may be introduced for a lump-sum withdrawal from the Employee Pension Scheme (EPS) Form 10C, encouraging workers to remain invested until they qualify for a monthly pension.

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