The Employees’ Provident Fund Organisation (EPFO) is set to launch a revolutionary UPI-based withdrawal facility by April 2026. This initiative, developed in collaboration with NPCI (National Payments Corporation of India) and C-DAC, aims to make accessing your retirement savings as simple as a bank transfer, specifically targeting ease of use for blue-collar workers.
Add rightsofemployees.com as a Preferred Source
Also Read | Best Jio Annual Plans 2026: Unlimited 5G from ₹3,599/Year [UPDATED]
1. The “₹25,000” Per Transaction Cap
To ensure security and prevent potential misuse of instantaneous fund transfers, the government has proposed an initial limit on UPI withdrawals:
-
Transaction Limit: A cap of ₹25,000 per transaction is speculated for the rollout phase.
-
Rationale: Instantaneous transfers are more prone to fraud; a smaller cap acts as a “buffer” to protect the member’s larger corpus.
-
Total Daily Limit: While the per-transaction cap is ₹25,000, the overall daily UPI limit (typically ₹1 Lakh to ₹5 Lakh depending on the bank and category) will still apply.
Also Read | Best Jio Annual Plans 2026: Unlimited 5G from ₹3,599/Year [UPDATED]
2. How the UPI System Works
Members will no longer need to file traditional, time-consuming claims for small advances. The process will be integrated into the BHIM App:
-
Balance Segregation: The app will clearly display your Total Balance vs. Eligible Withdrawal Balance.
-
The 25% Rule: You must maintain a minimum of 25% of your total contributions in the account at all times to ensure long-term compounding and retirement security.
-
Instant Credit: Once you enter your UPI PIN, the funds will be credited to your seeded bank account in seconds, rather than the 3–7 days currently taken by auto-settlement.
3. Frequency Limits: The “Catch”
While the system offers high flexibility, there is a strict limit on how often you can withdraw. If you hit the frequency limit with small ₹25,000 transactions, you may be blocked from further withdrawals even if you have an “eligible balance” left.
Also Read | Best Jio Annual Plans 2026: Unlimited 5G from ₹3,599/Year [UPDATED]
| Category | Withdrawal Frequency (Per Year) |
| Essential Needs (Medical, Marriage, Education) | Up to 3 Times |
| Special Circumstances | Up to 2 Times |
| Housing Needs | Generally Once (subject to specific 2026 reforms) |
Warning: If you withdraw ₹25,000 three times for “Essential Needs,” you will exhaust your frequency for that year, even if your total eligibility was much higher (e.g., ₹2 Lakh). Plan your withdrawals carefully!
4. Security and Eligibility Requirements
To use the UPI facility in April 2026, ensure the following are updated:
-
UAN Activation: Your Universal Account Number must be active.
-
KYC Compliance: Aadhaar and PAN must be linked.
-
Bank Seeding: Your UPI-linked bank account must match the bank account registered with the EPFO.
Also Read | Best Jio Annual Plans 2026: Unlimited 5G from ₹3,599/Year [UPDATED]
Add rightsofemployees.com as a Preferred Source
