How does EPF withdrawal via UPI work and who should use it?

From April 2026, EPF members will be able to pull money directly from their PF accounts into their bank accounts using UPI, mainly through the BHIM app, instead of filing a withdrawal claim and waiting days for processing. Early plans suggest an initial per‑transaction cap of Rs 25,000 to keep instant withdrawals safe and under control. This change aims to give workers faster access in emergencies while still protecting a part of their retirement savings through a minimum balance rule.

Under the new system, your EPF balance will be shown in two parts on the interface: the eligible amount that you can withdraw and the mandatory minimum 25 percent that must always stay invested. You will use your existing UPI PIN, and once you confirm the transaction in the BHIM or other linked app, the money will move instantly to your bank account. Existing UPI safeguards and daily limits will continue to apply, so both EPFO rules and UPI rules will together decide how much you can pull out in one go.

This UPI facility builds on the recent liberal rules where partial withdrawals have been simplified into three broad purposes and where members can take out up to 100 percent of the eligible balance while maintaining 25 percent as minimum balance to keep earning interest. The Rs 25,000 cap per transaction is meant as a starting guardrail because instant systems can be misused, and people might also exhaust their limited number of withdrawals too quickly. For many blue collar and younger workers, this move can turn EPF into a more responsive safety net in times like illness, education fees or urgent cash flow gaps, while still nudging them to preserve a core retirement corpus.