PF withdrawal to be eased: Soon, EPFO may allow advance claims via BHIM app
Jan 9, 2026
Synopsis
In a big relief for PF members, the EPFO will soon allow instant Provident Fund withdrawals for over 30 crore members. This new facility will be available through the BHIM app in the next two to three months. Members can claim PF advances for health, education, and special circumstances, and the sanctioned money will be directly credited to UPI-linked bank accounts.
The Employees’ Provident Fund Organisation (EPFO) is going to enable instant Provident Fund withdrawals for over 30 crore beneficiaries via the BHIM app in the next two to three months. The move aims to improve the ease of access and flexibility for over 30 crore members so that they can instantly withdraw the provident fund corpus, reports Times of India. The facility is very similar to ATM withdrawal service and is at the centre of the retirement fund body's undergoing digital overhaul that manages a corpus of over 26 lakh crore. EPFO has collaborated with NPCI and this initiative allows withdrawals for health, education, and special circumstances directly into UPI-linked bank accounts.
Big changes for PF withdrawal soon
The EPFO is planning to offer over 30 crore beneficiaries the chance to instantly withdraw money from their Provident Fund accounts using the BHIM app. The initiative is expected to be rolled out in the next two to three months. Under the new initiative, you'll be able to claim PF advances under any permissible category, such as health, education and special circumstances. For now, this feature will only work on BHIM, but could expand to other UPI apps later.
After the claim is filed, it will be verified and authenticated by the EPFO at the backend, after which the amount will be settled instantly through the State Bank of India, an official told TOI. The sanctioned amount will then be credited directly to the member’s UPI-linked bank account.
Officials indicated there may be caps, at least initially, to check against misuse. "The entire permissible corpus won't be withdrawable over BHIM app because RBI has set its own limits on UPI withdrawals. Anything instantaneous carries underlying risks as well. The cap is yet to be decided," an official told Times of India.
Where will the money be transferred?
The approved amount for transfer will be directly deposited into your bank account, which is linked to UPI. Currently, this feature is only available on the BHIM app. However, the feature may be expanded to other UPI-based fintech applications in the future. Officials have said that the withdrawal amount will initially be limited to prevent misuse of this feature. Currently, an online advance claim processed in auto mode for amounts under ₹5 lakh takes at least three working days to be settled, with larger claims or those requiring manual processing taking longer.
PF money withdrawal
You can withdraw money from your Provident Fund (PF) account either at retirement or during certain specified life events such as unemployment, medical emergencies, education, or housing needs. The eligibility conditions and withdrawal limits vary depending on the reason and your length of service.
Full withdrawal is allowed in the following cases:
Retirement: After attaining the age of 58 years or more.
Unemployment: If unemployed for two continuous months. You may withdraw up to 75% of the PF balance after one month of unemployment, with the remaining 25% allowed after two months.
Permanent Disability: In the event of permanent and total disability that makes you incapable of working.
Permanent Migration Abroad: If you are permanently relocating to another country.
Partial withdrawal is permitted under these circumstances:
Medical Treatment: For critical illnesses of yourself, your spouse, children, or parents. No minimum service period is required.
Housing Needs:
Purchase or construction of a house or plot after five years of service
Repayment of a home loan after three years of service
House renovation after five years from the completion of construction
Education: For post-matriculation education of yourself or your children after seven years of service.
Marriage: For your own marriage or that of your children or siblings after seven years of service.
Natural Calamities: To manage financial hardship caused by natural disasters.
[The Economic Times]
