The Employees' Provident Fund Organisation (EPFO) has launched EPFO 3.0, a comprehensive digital transformation initiative that fundamentally changes how subscribers access their retirement funds. According to reports from Mint, this upgrade seeks to eliminate processing delays by allowing subscribers to access and transfer their PF directly through the unified payments interface (UPI) and UPI-enabled automated teller machines (ATMs). The Central Board of Trustees approved the broader EPFO 3.0 digital transformation framework in October 2025, with a plan to use a bank-like Core Banking Solution, API-based services and a unified digital experience. The Ministry of Labour and Employment completed migration of the member database to a centralised platform under the Centralised IT Enabled Services (CITES) project in July, replacing the previous decentralised structure with a single national database.
Under the new system, EPF subscribers can withdraw 50% to 75% of their EPF balance via UPI or UPI-enabled ATMs, depending on applicable conditions. As reported by Mint, this represents a significant improvement from the previous process where members had to raise requests for full or partial withdrawal through websites or physical forms, with money usually transferred to bank accounts within 15-20 days. The auto-settlement limit has been increased from ₹1 lakh to ₹5 lakh to allow many EPFO members to access their EPF funds within three days for needs such as buying and building a house, education, medical treatment, or marriage. Under the withdrawal reform approved by the Central Board, 25% of the member's contribution is intended to be retained as a minimum balance, while the eligible amount available for withdrawal can be significantly higher than under the previous structure.
The new system enables members to use face authentication technology (FAT) in the UMANG app to get and activate UANs as well as activate existing UANs to instantly access their passbooks, update incorrect information and submit claims online. According to Mint, members can now digitally respond to queries raised online by EPFO offices wherever additional information or clarification is required during claim processing. This upgrade from the older website where members often applied blind and faced rejection when claims exceeded permissible limits provides members with informed choices about eligible withdrawal amounts under different circumstances. The project's official framework envisages real-time tracking of contributions, withdrawals and benefits through integrated channels, with the planned platform intended to provide more accessible self-service capabilities, including multilingual digital interaction.
For FY26, the Centre ratified the EPFO's suggestion of 8.25% interest rate for both EPF and VPF and interest credits were completed in July, marking the third consecutive time the instrument delivered 8.25% returns. As reported by Mint, the government said in February 2026 that claims clearing the relevant risk-management checks are designed to be processed automatically, potentially reducing manual settlement time from up to 20 days to less than three days. The approved reform also seeks to simplify the minimum service requirement, with the Central Board deciding that the minimum service requirement for different partial-withdrawal categories would be brought to 12 months, compared with the varying requirements that previously applied to different types of withdrawals. This could make PF access considerably easier for employees who have relatively short periods of service.
