The Centre has ratified the Employees’ Provident Fund Organisation’s suggestion of 8.25% interest rate for EPF deposits this financial year (FY2025-26), PTI reported citing a source. It added that the interest will likely be credited into accounts of over seven crore subscribers this month.
The rate was proposed by the EPFO’s Central Board of Trustees (CBT) in March but needs to be approved by the Union Finance Ministry before it can be implemented. This marks the third consecutive term that EPF subscribers receive on their provident fund savings with the retirement fund body.
As per latest data, the organisation manages a of nearly ₹28 lakh crore. Looking ahead, here’s a look at the EPFO 3.0, what it means, and what are the new rules which allow withdrawal of funds through ATM and UPI.
EPFO 3.0: What does this mean? Is there a launch date?
The organisation is undertaking to expand its digital services and online presence through an updated system that will allow subscribers to undertake paperless withdrawal or transfer of provident fund.
The move seeks to reduce wait time, improve members access to funds, eliminate processing delays, allow access and transfer to PF savings through the unified payments interface (UPI) and automated teller machines ().
Once full roll-out is complete will be able to process direct transfer of funds to their bank accounts through the UPI payment gateway. The body posts regular updates through its social media accounts, official releases or on its website here — epfindia.gov.in.
Union Labour Minister Mansukh Mandaviya in May said that testing of the facility has been completed, and the service is expected to be rolled out soon. He did not, however, provide a timeline or specific date for launch.
EPFO 3.0: What are the new rules for withdrawal?
As per the proposed rules, the will freeze at least 25% of a subscriber’s EPF funds and allow withdrawal of the larger chunk between 50-75% through UPI or ATM withdrawal.
Subscribers will be able to see the eligible EPF balance available to transfer into their seeded bank accounts and will be allowed to use the linked UPI pin to complete the transaction and ensure the secure transfer of money into their bank accounts.
Once the money is transferred to your , the subscriber can use it as they wish, such as making payments electronically or withdrawing cash at bank ATMs with debit cards.
Further, 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. This decision is to ensure subscribers have quicker access to funds for needs such as buying and building a house, , medical treatment in case of illness, or marriage.
EPFO 3.0: What changes for subscribers?
- According to the PTI report, keeping with the EPFO’s move towards a new system, dubbed as ‘’, interest for this fiscal will be credited into subscribers’ accounts immediately.
- Under EPFO 3.0, subscribers may be able to withdraw 50% to 75% of their EPF balance via UPI or UPI-enabled ATMs, depending on applicable conditions.
- Further, subscribers will be able to see the eligible available to transfer into their seeded bank accounts.
- It will allow members to use the linked UPI pin to complete transactions and ensure the secure transfer of money into their bank accounts.
- Members will be able to use face authentication technology (FAT) in the to get and activate UANs as well as activate existing UANs.
- Members will be allowed instant access to their passbooks, update incorrect information and submit claims online.
- It will also allow correction for first-time linking through the Joint Declaration link on the Member Portal.
- Once the money is transferred into bank accounts, members can use it to complete online payments or withdraw cash at ATMs.
- Members can also type ‘Hello’ to EPFO’s registered number, which is verified by a green tick mark for safety and assurance, to initiate the conversation with EPFO or choose to receive EPFO messages on their registered mobile number.
- Members will have 24/7 access with automated systems to handle repetitive queries in multiple languages.