EPFO 3.0: ATM Access, Standardised Procedures And Higher Withdrawals

Oftentimes, we hear many subscribers of the Employees’ Provident Fund (EPF) working in various private companies expressing their dissatisfaction about the delay or denial of rightful claims on social media and other forums.

From the portal that EPFO (Employee’s’ Provident Fund Organisation) subscribers have to use for making claims and transfers, to non-receipt of one-time passwords on mobiles, automatic logging off, non-updation of passbook, the list is long.

The time for change, for the better, of course, may have come. The labour minister was on record in a media interaction in December 2025 stating that a new EPFO 3.0 app would be rolled out early in 2026. Among other things, this app would enable withdrawal of EPFO proceeds from bank ATMs and also using the UPI interface.

Recent reports indicate that the app would be up and running by April 2026.

Late last year, the EPFO’s central board of trustees (CBT) approved a series of new reforms that reduced the minimum subscription times for withdrawals in various situations (marriage, education, medical, and so on) and standardised the procedures.

Apart from these steps, the process of updation of subscriber data has been simplified.

Read on for the details of the new EPFO 3.0, and the collective impact of the new rules on all provident fund subscribers.

New app avatar

For starters, the EPFO 3.0 is not an upgrade of some earlier version. It would be an entirely new app dedicated to EPF subscribers’ transactions.

To be sure the Umang app and EPF’s UAN (Universal Account Number) portals would continue to function for the foreseeable future and allow withdrawals and updations.

The new EPFO 3.0 is expected to capture all the details of EPF subscribers and is likely to have an easy navigation style.

One of the most publicised feature to be available with this new app is the ability to make withdrawals via ATMs.

The EPFO would provide ATM cards linked to the EPF accounts. Subscribers will have to apply for the card.

Once the claim you make is approved, the funds are released to your linked bank account, which can be withdrawn from designated ATMs with the card that EPFO would provide.

Also, withdrawals can be done via linked UPI accounts at ATMs.

For this feature to be available, a few criteria need to be met.

First, your UAN in the EPF account must be active. Second, the mobile number that is linked to the UAN must be active.

The third and most important factor, your EPF account must be KYC compliant.

To become KYC compliant, you must have your Aadhaar, PAN, photograph (passport size for uploading), bank details, address and identity proof documents in place.

The bank account you use must be your a current and active one. Cheque leaves need to be scanned and uploaded as a part of the KYC process.

The process in entirely online and must be done by employees themselves.

Where EPFO 3.0 is expected to be especially beneficial is in the ease of transactions.

EPF subscribers can correct any errors in information, upload KYC documents, make modifications of important details (banks, personal details, address, and so on) themselves. This is done via OTP (one-time password) authentication of the subscribers via their mobile devices.

There would be no need for employer’s or any other party’s authentication for making most of the updations and transactions.

EPFO 3.0 is expected to be simple to log into and for initiating balance transfers between employers, especially as there are reports of the organisation engaging leading software companies for the new app and interface.

The approval timelines for claims is expected to come down from a few weeks to a few days as well.

Reduced timelines, higher withdrawals

As mentioned, the CBT also made numerous simplifications to several rules related to withdrawals for various purposes in October 2025.

As many as 13 types of partial withdrawal provisions available presently, which caused quite a bit of confusion and delays or even rejections of claims,  have now been merged and there is only one simplified framework.

You can now make withdrawals for all purposes (medical, education, marriage, house construction and so forth) provided you (and your employer) have made EPF contributions for just 12 months.

Earlier the rules relating to the timelines were different for various partial withdrawals. Education  for self or child (7 years), marriage for self or child (7 years) and house construction  or repayment of loan (3 years), and so on, had varied minimum contribution periods before a subscriber could make withdrawals.

The amount you can withdraw now is also clear, higher and standardised. For all purposes, you can withdraw up to 75 per cent of your accumulated EPF corpus (employer and employee contribution plus accrued interest).

Before, the rules allowed you to withdraw 50 per cent of own (employee) contribution plus interest, just 50 per cent of own contribution, six months’ worth of basic and dearness allowance and suchlike, depending on the reason for the partial withdrawal.

If a subscriber becomes unemployed (involuntary attrition or for some other reasons), she can now withdraw 75 per cent of the accumulated EPF corpus immediately. The remaining 25 per cent can be withdrawn after one year if the unemployment status continues.

Going easy on withdrawals

The ease of withdrawal does not mean you choose the first chance to withdraw from your EPF balance.

More so if the EPF is the only substantial investment you make on a regular basis for your retirement.

Indeed the note from the labour ministry on the EPFO reforms makes an important observation. About 50 per cent of the subscribers had less than ₹20,000 as their EPF balance and about 75 per cent had less than ₹50,000 at the time of final retirement settlement.

Have an emergency corpus ready for contingencies, medical and term insurance for covering risks. Try to plan systematically for life goals instead of taking recourse to the EPF, which must be your retirement kitty, with 8.25 per cent assured returns annually.

Published on February 14, 2026