EPFO 3.0 New Rules 2026: PF Withdrawal via ATM & UPI - Limits, Rules & How It Works

The new EPFO 3.0 has transformed user accessibility to provident fund. The new EPFO 3.0 brings auto-claim settlement, UPI-based withdrawals, and EPF-linked ATM cards; this saves huge time, from weeks to hours in most cases. The standard withdrawal no longer requires approval or Aadhaar verification, while the auto-settlement limit has been increased to Rs. 5 lakh from Rs. 1 lakh. EPFO 3.0 introduces a minimum balance of 25% that must be maintained in the account to protect retirement savings, and existing tax rules on withdrawals are not changed. 

EPFO 3.0 Rules Update

The newly notified EPF Scheme and EPFO 3.0 rules are now in effect from 29th June 2026. Key changes are as follows:

Feature	Detail
UPI Withdrawals	Up to 75% of EPF balance can be withdrawn through UPI
ATM Withdrawals	EPFO to issue EPF-linked ATM cards to ensure easy withdrawal
Auto-Settlement Limit	Auto settlement limit has been increased to Rs. 5 lakh from the existing Rs. 1 lakh
No Employer Approval	No employer approval required as Aadhaar OTP and Self-certification allowed for standard withdrawals
Bank Tie-ups	EPFO tie-up with 32 public & private sector banks
25% Lock-in Rule	Minimum 25% balance must remain in account at all times for retirement savings
Tax Rules Unchanged	Withdrawals remain tax-free after 5 years but TDS applicable for early withdrawal exceeding Rs. 50,000

What is EPFO 3.0?

EPFO rolls out version 3.0, a robust IT-driven platform designed to make member services faster and more accessible. The upgrade will introduce features like auto-claim settlement, digital corrections, and instant fund withdrawals via ATMs and UPI. 

Members will also be able to check their PF balance on UPI, transfer funds directly to their preferred bank account, and securely update details on EPF accounts through OTP verification.

Eligibility Criteria for Members

For a hassle-free withdrawal of the PF amount, the following conditions need to be met.

• Activation of the Universal Account Number (UAN).
• The mobile number linked to UAN should be in working condition.
• Linking of UAN with KYC documents like Aadhaar, PAN, account number and IFSC code.

Documents Required for PF withdrawal

An EPF account holder should have the following documents for PF withdrawal:

• Address Proof
• Identity Proof
• One blank and cancelled cheque with the IFSC code and bank account number shown
• Universal account number (UAN)

How to Withdraw PF through ATM and UPI?

Under EPFO 3.0, PF will be withdrawn through ATM and UPI in the manner mentioned below:

• Members of PF accounts will be provided with PF withdrawal cards that are similar to a bank ATM.
• PF withdrawal cards will be linked to the PF account of the account holders.
• There may be a limit of 50% of PF account balance withdrawal in order to save the PF balance for emergency situations.

EPF Withdrawal through UPI

With the EPFO 3.0 updates, members will now be allowed to withdraw their EPF balance through their UPI, enabling the money to be directly credited to the linked bank account. However, members can are only allowed to withdraw up to 75% of their EPF balance through UPI. 

This withdrawal facility integration is being built with the National Payments Corporation of India with withdrawal support across various UPI apps. Also, aadhaar OTO based authentication will enable instant processing of the withdrawal. 

EPF Withdrawal through ATMs

The EPFO will issue a PF-linked ATM cards to its member to enable easy withdrawal through ATMs. Members can easily withdraw EPF funds directly through ATMs thus focusing on making withdrawal easy for members with limited internet access. However, a key rule remains that atleast 25% of the EPF funds must remain untouched to protect retirement savings. 

Who can use UPI and ATM withdrawal?

To access faster withdrawals and upcoming UPI or ATM features, EPF members must meet the following requirements:

• Have an active UAN (Universal Account Number)
• Link Aadhaar with UAN
• Link PAN (to avoid higher TDS deductions)
• Update bank account details with correct IFSC
• Maintain an active mobile number for OTP verification

Members who fulfil these conditions can seamlessly use digital withdrawal methods and benefit from quicker fund access.

How Much PF Can You Withdraw?

The PF withdrawal limits depend on the purpose and eligibility. As per the EPFO 3.0 framework:

• EPF members can withdraw up to 75% of their PF balance after one month of unemployment.
• Full withdrawal of 100% is allowed after two months of unemployment or upon retirement.
• For purposes like marriage, education, or housing, members can typically withdraw up to 50% of their PF balance, though limits may vary depending on the specific condition and eligibility.

Increased Auto-Settlement Limit

The auto-settlement limit has been increased to Rs. 5 lakh from the existing Rs. 1 lakh. This means that most of the claims can now be processed automatically. This also reduces settlement time drastically and prevents the need for manual intervention. 

ATM/UPI Integration

In order to provide a seamless and simpler experience for PF account holders, EPFO has agreed with 32 public and private sector banks so that the employers can directly pay the PF contributions to the banks they deal with for maintaining the accounts of employees. This is done to reduce the claim processing time to three days.

Pension Contribution Flexibility under EPFO 3.0

There is also a possibility of some changes in the portion of employee’s salary towards PF contribution and salary limit.

• Plans are underway to raise the contribution limit of 12% on Voluntary contributions of employees
• Also, there is a possibility to increase the salary limit to Rs. 21000 for passing the EPF eligibility.

Benefits to Salaried Employees

EPFO 3.0 carries a lot of benefits to employees, which are discussed below:

• Now employees don’t have to wait for many days to receive cash payment. Through EPFO 3.0, 95% of the claims get settled automatically, reducing the time to hours or even minutes
• The employees can now directly update their PF accounts, reducing their dependence on employers
• Now, employees don’t need the attestation of employers before withdrawing their PF account balance
• EPFO 3.0 provides a quick way of obtaining cash in case of emergencies like illness, marriage or education.

Potential Risks

While EPFO 3.0 will make PF services simpler, this upgrade might lead to certain risks.

• Fraudsters may attach skimming devices to ATMs to steal card details, leading to identity theft.
• Hidden cameras can be installed to capture PINs entered during transactions.
• Problems like poor network connectivity or glitches may cause transaction failures or duplicate charges. 

Tax Rules on PF Withdrawal

The tax implication on PF wothdrawal remain unchanged under the EPFO 3.0 framework. The PF withdrawal is tax-free if withdrawan after 5 years. However, TDS will be applicable on withdrawal exceeding Rs. 50,000 for early withdrawals. 

Traditional Withdrawal v/s EPFO 3.0 Withdrawal