EPFO 3.0 Update: PF Withdrawal via UPI and ATM Soon as Centre Clears 8.25% EPF Interest Rate
The Centre has approved the Employees' Provident Fund Organisation's (EPFO) proposal to provide an 8.25% interest rate on Employees' Provident Fund (EPF) deposits for FY 2025-26. The interest rate, recommended by the EPFO's Central Board of Trustees in March, is expected to benefit more than seven crore subscribers and may be credited to accounts this month.
The Centre has approved the Employees' Provident Fund Organisation's (EPFO) proposal to provide an 8.25% interest rate on Employees' Provident Fund (EPF) deposits for FY 2025-26. The interest rate, recommended by the EPFO's Central Board of Trustees in March, is expected to benefit more than seven crore subscribers and may be credited to accounts this month.
This is the third consecutive year that EPF subscribers will receive an interest rate of 8.25% on their provident fund savings.
What Is EPFO 3.0?
EPFO 3.0 is the retirement fund body's major digital transformation initiative aimed at making provident fund services faster, paperless and more accessible. The upgraded system is designed to simplify PF withdrawals, transfers and account management through digital channels. EPFO 3.0 Update: PF Withdrawals Through UPI and ATM Soon, Auto-Settlement Limit Raised to INR 5 Lakh.
The move is expected to reduce processing delays, improve access to funds and enable subscribers to manage their PF accounts with minimal paperwork.
PF Withdrawal Through UPI and ATM
One of the biggest changes proposed under EPFO 3.0 is the ability to withdraw EPF funds through UPI and UPI-enabled ATMs.
Subscribers will be able to view their eligible PF balance, transfer approved amounts directly to their bank accounts and authenticate transactions using their UPI PIN. Once the money reaches the bank account, it can be used for digital payments or withdrawn as cash through ATMs. EPFO 3.0 Explained: When Will UPI and ATM PF Withdrawals Start, How Much Can EPF Members Withdraw?
New EPFO Withdrawal Rules
Under the proposed framework, EPFO may allow subscribers to withdraw 50% to 75% of their eligible EPF balance through digital channels, depending on applicable conditions.
The organisation is also expected to keep a portion of the corpus protected while allowing faster access to funds for genuine financial requirements.
Auto-Settlement Limit Raised to INR 5 Lakh
To speed up claim processing, EPFO has increased the auto-settlement limit from INR 1 lakh to INR 5 lakh.
The change is expected to help members receive funds within three days for purposes such as housing, education, marriage and medical emergencies.
Key Features of EPFO 3.0
- PF withdrawal through UPI and UPI-enabled ATMs
- Faster claim settlement and fund transfers
- Instant access to EPF passbooks
- Online correction of personal details
- Digital claim submission and tracking
- Face Authentication Technology (FAT) for UAN generation and activation through the UMANG app
- Aadhaar correction and linking through the Member Portal
- WhatsApp-based support services
- 24x7 multilingual automated assistance
When Will EPFO 3.0 Launch?
Union Labour Minister Mansukh Mandaviya recently said that testing of the new system has been completed and the rollout is expected soon. However, the government has not yet announced an official launch date.
Once implemented, EPFO 3.0 is expected to significantly improve the experience of millions of EPF subscribers by making withdrawals, transfers and account services quicker and more convenient.
(The above story first appeared on LatestLY on Jun 20, 2026 03:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
