The Employees' Provident Fund Organisation (EPFO) has delayed the rollout of its Unified Payments Interface (UPI)-linked claim settlement facility to August 2026 as it works to resolve technical issues with its upgraded digital platform. The facility, which was earlier expected to be launched by the end of FY26 (March 2026), is now likely to be introduced in August following member complaints about multiple issues on the revamped portal. According to Business Standard reports, all major errors are expected to be fixed by the first week of August, after which the UPI-linked transaction facility is likely to be rolled out.
EPFO is currently focusing on resolving technical issues reported after the migration to its upgraded Centralised IT Enabled Services (CITES 2.01) platform earlier this month. Members have complained about missing details of older provident fund accounts on the revamped portal, login failures, slow loading speeds and delays in claim processing. The retirement fund body is prioritising the stabilisation of CITES 2.01 before introducing new digital services, with major issues on the platform expected to be resolved by the first week of August. At a meeting in March 2025, EPFO's Executive Committee reviewed progress on the initiative, which aims to enable instant credit of eligible claims to members' bank accounts through the UPI platform.
The proposed UPI-linked facility will allow EPF members to receive eligible claim settlements directly into their bank accounts through a BHIM-linked UPI interface. As reported by Business Standard, the system will work alongside the existing National Electronic Funds Transfer (NEFT)-based payment mechanism instead of replacing it, meaning members will continue to have the existing payment option even after the introduction of the UPI-based system. Union Labour and Employment Minister Mansukh Mandaviya unveiled the proposal for UPI-based EPF claim settlements in 2025 as part of the EPFO 3.0 reforms. The integration is being developed by the Centre for Development of Advanced Computing, EPFO's technology partner, which is building the required application programming interfaces (APIs) and system interfaces with the State Bank of India (SBI) and the National Payments Corporation of India (NPCI) under the CITES 2.01 modernisation project.
Families of deceased EPF subscribers can now claim provident fund, pension and Employees' Deposit Linked Insurance (EDLI) benefits online through the EPFO portal. The process requires the member's UAN, Aadhaar details, death certificate and bank documents, with the facility currently available only on the EPFO website and not through the Umang app. Under EPF rules, the provident fund is first paid to the nominee registered by the member, with the spouse and children treated as family members for payment purposes. If no nomination exists, the amount is distributed equally among eligible family members, and if there is no valid nominee or eligible family member, the amount is paid to the person legally entitled to receive it. The online process enables nominees and eligible legal heirs to submit claims without visiting an EPFO office in many cases.
EPFO has retained the EPF interest rate at 8.25% for FY2025-26, marking the third consecutive year that EPF subscribers have received the same rate. EPF and Voluntary Provident Fund (VPF) deposits continue to earn 8.25% annual interest, with employee contributions of up to ₹1.5 lakh remaining eligible for deduction under Section 80C under the old tax regime. Employer contributions of up to 12%, subject to the prescribed exemption limits, remain tax-free under both the old and new tax regimes. Interest earned on eligible EPF contributions also remains tax-exempt within the applicable limits, while EPF subscribers can make partial withdrawals of up to 75% of the eligible corpus, subject to EPFO rules.
