The Employees’ Provident Fund Organization (EPFO) has improvised its backend software is all set to launch its new digital platform EPFO 3.0. Following the update, EPFO members will be able to transfer eligible PF funds directly to their Aadhaar-linked bank accounts using UPI-based services.
Under the new service, according to reports, EPFO members will be able to withdraw money directly from their PF accounts using UPI apps and EPF-linked ATMs. The EPFO has partnered with NPCI to develop the new feature that will be launched by June end. Around 75% of the EPF balance can be instantly transferred to the bank accounts using UPI and UPI enabled ATMs.
Security features like face authentication have been incorporated into the system. Consumers will be able to process the face authentication through UMANG app thereby reducing the need of additional verification.
Besides this the govt has also increased the auto-settlement limit for PF claims. Earlier, the maximum limit for auto-settlement was ₹1 lakh, which is now raised to ₹5 lakh.
Experts have appreciated this move by EPFO and believe this will uplift PF withdrawal process, reduce paperwork and make the system transparent and accountable. Another expert believes that EPFO 3.0 is a major step towards the digitisation of India’s financial system.
Meanwhile, the sources reveal the government has ratified the 8.25% interest rate on EPF deposits for FY26, and the process of crediting the amount to members’ accounts is set to begin shortly. A formal notification is yet to be released.
Earlier in March, the EPFO’s apex decision-making body, the Central Board of Trustees (CBT), chaired by Labour Minister Mansukh Mandaviya, approved an interest rate of 8.25% for FY26 for more than eight crore EPFO subscribers.