EPFO App Update: Auto-Settlement Up to ₹5 Lakh and UPI Access Explained

In a major digital push, the Employees’ Provident Fund Organisation (EPFO) is set to launch a new mobile application by April 2026.

This dedicated platform will allow its 80 million subscribers to withdraw their provident fund (PF) savings instantly.

They will use the Unified Payments Interface (UPI) for these transactions.

The move aims to bring PF services on par with modern banking, replacing the traditional multi-day claim process with real-time transfers.

Instant Withdrawals and Auto-Settlement

The upcoming app, part of the “EPFO 3.0” reform, introduces a seamless way for employees to access their funds.

Currently, even auto-settled claims can take up to three days.

The new UPI-based system will enable instant transfers for eligible portions of the PF balance directly to linked bank accounts.

To ensure retirement security, the Labour Ministry is developing a “frozen balance” framework: at least 25% of the total corpus will remain locked for long-term savings, while up to 75% will be available for immediate withdrawal under specific categories like medical emergencies, education, or housing.

EPFO Enhanced Features and Technical Readiness

Beyond UPI transactions, the app will serve as a comprehensive service hub.

Users can view their digital passbook, update nominees, and submit digital life certificates without visiting physical offices.

The system is also expected to handle auto-settlement of claims up to ₹5 lakh automatically.

To ensure a glitch-free experience, EPFO is currently conducting rigorous trials using 100 dummy accounts to test transaction stability and security.

The existing UAN portal and UMANG app will continue to function alongside this new dedicated application. This ensures service continuity for all users.

Modernizing India’s Largest Social Security Body

The integration with BHIM-UPI signifies a historic shift for EPFO, which settles over 50 million claims annually.

The organization expects to drastically reduce its administrative burden by eliminating the need for traditional paperwork and manual verification for eligible transactions.

This shift will streamline the claim process significantly.

While a transaction cap of ₹25,000 has been proposed for initial UPI transfers to prevent misuse, the overall goal is to provide millions of Indian workers with faster, more transparent, and paperless access to their hard-earned savings.

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