The biggest question on the minds of salaried employees right now is- will Provident Fund (PF) money soon be withdrawable through UPI apps like Google Pay, PhonePe and Paytm?

The Employees’ Provident Fund Organisation (EPFO) is developing a new system that will allow EPF withdrawal through UPI, but not all apps will be included in the first phase.

According to officials, EPFO plans to initially enable withdrawals only through the BHIM UPI app, which is operated by the National Payments Corporation of India (NPCI). This means that, at the start, Google Pay, PhonePe and Paytm will not support PF withdrawal, though they are expected to be added later once the system stabilises.

When will UPI-based PF withdrawal actually start?

The facility is likely to be rolled out in the next two to three months, after integration and testing with NPCI systems. EPFO will verify Aadhaar, bank and PF account details digitally and then process claims much faster than the existing method.

In the initial rollout:

  • full PF withdrawal will not be permitted
  • a withdrawal limit will apply as per RBI’s UPI rules
  • The facility will be restricted to eligible advance claims like medical treatment, education, marriage, etc.

The focus during the pilot phase will be security and fraud prevention.

READ MORE: EPFO to soon offer instant PF withdrawals via BHIM app, akin to ATM

How fast will Provident Fund money reach your bank account?

Today, even small advance claims often take three or more working days. With UPI, the time frame is expected to reduce significantly.

After verification, the amount will be transferred directly by State Bank of India to the bank account linked with the UPI ID.