Summary
Good news for EPFO members! Withdraw PF Using UPI & ATM is going to start at the end of May 2026. It is being done under the EPFO 3.0 revised framework, launched last year in 2025. The aim is to process withdrawals in a hassle-free and fast manner. Nearly 8 crore subscribers will be benefited. The maximum limit of withdrawal is 75%, and the remaining 25% is reserved for retirement. Tax rules remain unchanged – if you withdraw after 5 years of service, you do not need to pay tax.
Table of Contents
Under Revised EPFO 3.0: Withdraw PF Using UPI & ATM
No more frustrating PF fund withdrawals – EPFO subscribers can now withdraw PF using UPI and ATM. Under the EPFO 3.0 framework, PF withdrawal through UPI and ATM is likely to begin by the end of May 2026. Approximately 8 crore subscribers are expected to benefit from this service.
How to Withdraw via ATM: EPFO will provide a dedicated ATM card to its members, which will be linked directly to their PF account – this card cannot be used for a regular bank account. The dedicated ATM card will function like a bank debit card, allowing members to withdraw funds from authorised ATMs. Through this route, the withdrawal limit is expected to be capped at 50% of the total PF account balance.
How to Withdraw via UPI: Members simply need to select the UPI payout option within the EPFO portal, and the amount will be credited directly to their linked bank account within a few hours.
What is the EPFO 3.0 Framework?
It is a revised framework for fast, modernized, and seamless processing, launched in 2025. Many rules have already been implemented, such as auto settlement for UPI & ATM withdrawals, though not officially stated, it is likely to begin by the end of May 2026. EPFO is aiming to have 95% of all standard claims settled automatically
Key Rules Under Revised EPFO 3.0 Framework
- Withdraw PF Using UPI & ATM
- Auto-Settlement Limit Raised to ₹5 Lakh (Already Started)
- Previously there were 13 different withdrawal provisions, but under EPFO 3.0 they are mainly categorised into 3 broader categories: Essential Needs, Housing Needs, Special Circumstances.
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Requirements for Faster Withdraw PF Using UPI & ATM
- You must complete your KYC before using the UPI & ATM withdrawal facility.
- Activate your UAN and link it with Aadhaar and PAN (to avoid TDS deductions)
- Bank account details and IFSC code are digitally verified and updated in EPFO records.
- Register your mobile number for OTP verification.
Step-by-Step Process to Withdraw PF Online Using UPI & ATM
Via ATM:
The subscriber visits an EPFO-enabled ATM, selects the PF withdrawal option, and enters their Universal Account Number (UAN) along with the desired amount. To verify their identity, they must provide a One-Time Password (OTP).
Via UPI:
Before claiming, check your KYC status on the EPFO portal – whether Bank, Aadhaar and PAN are verified, and whether the mobile number linked to Aadhaar is the same as the mobile number registered on the portal.
- Select Claim Form: Go to Online Services > Claim
- UPI Verify: Select Payout via UPI (whenever it goes live)
- Request: Upload required documents and details
- Track Status: In the case of UPI, settlement will be within 24 hours if the amount is under ₹5 lakh
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PF Withdrawal Limits Using UPI & ATM Under EPFO 3.0
There is no official announcement yet, but speculation suggests that under the EPFO 3.0 framework, you can withdraw a maximum of 50% of your total PF corpus via ATM and UPI.
Of the total balance, 75% can be withdrawn overall, while the remaining 25% must mandatorily remain untouched for retirement purposes. 100% withdrawal is only permitted when you have been unemployed for two months or more.
Under EPFO 3.0, PF withdrawal limits differ depending on the purpose and eligibility, categorised into three types – Essential Needs, Housing, and Special Circumstances.
Tax on PF Withdrawal Using UPI & ATM
Tax rules remain the same as before – no changes. The amount is tax-free if you withdraw after 5 years of continuous service. If you withdraw before 5 years, TDS (Tax Deducted at Source) will apply if the amount is more than ₹50,000.
F.A.Q.
Can I Withdraw PF Funds from My Bank ATM?
- No. You will need a dedicated ATM card provided by EPFO only. With this card, you can withdraw from any ATM.
Can I Take Out 100% of My PF Balance While Working?
- No, the maximum limit is 75% and 25% must be reserved for retirement.
Are UPI and ATM available for pension money withdrawal?
- As of now, there is no provision for pension fund withdrawal using UPI and ATM.
Is Employer Intervention Needed for Withdrawal?
- No. You do not need employer approval. You can do it yourself. You just need your UAN linked to Aadhaar and KYC completed.
What Is the Auto-Settlement Limit Under EPFO 3.0?
- If the claim is under ₹5 lakh, it will be auto-settled.
Does the 25% Balance Rule Apply to All EPFO Members?
- Yes, under EPFO 3.0, 25% of the fund should remain untouched for retirement purposes.
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