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 8.25% interest rate on their provident fund savings with the retirement fund body.
As per latest data, the organisation manages a corpus 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 EPFO 3.0 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 (ATMs).
Once full roll-out is complete EPF subscribers 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 EPFO 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 bank account, 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, education, medical treatment in case of illness, or marriage.