EPFO 3.0: How the Employees' Provident Fund Organisation plans to make your PF account a virtual bank in 2026

The Employees' Provident Fund Organisation (EPFO) is preparing to launch its upgraded, technologically advanced platform, EPFO 3.0, introducing a major overhaul with seamless services. Last year, Union Labour and Employment Minister Mansukh Mandaviya said that the EPFO 3.0 will make the system as accessible as a bank.

According to a report by The Indian Express, citing a senior government official, the EPFO 3.0 could be rolled out with a new architecture, fresh backend software and AI-powered language tools to provide faster services to over 8 crore active EPFO members. 

Under EPFO 3.0, the PF organisation will go through a member-centric digital transformation to offer modernised services with enhanced transparency and efficiency. 

EPFO 3.0 will be implemented in phases, the Ministry of Labour & Employment said in October 2025. It will feature a hybrid design, integrating a proven Core Banking Solution with cloud-native, API-first, microservices-based modules for account management, ERP, compliance, and a unified customer experience, it said.

“The initiative will enable faster, automated claims, instant withdrawals, multilingual self-service and seamless payroll-linked contributions, reaffirming EPFO’s commitment to transparent, efficient and technology-driven service delivery for over 30 crore members,” the ministry had said.

In August 2025, the EPFO had shortlisted Tata Consultancy Services (TCS), Infosys and Wipro for participation in the next stage of the selection process for implementation, operation and maintenance of the EPFO 3.0 platform. 

EPFO 3.0 key features

• Integrating a core banking solution
• Using cloud-native, API-first, microservices-based modules
• Making claim settlements faster
• Enabling instant withdrawals
• Offering multilingual services
• Making the system more transparent
• Introducing auto-claim settlement without manual intervention
• Offering ATM withdrawal of funds, making EPFO services as accessible as a bank
• Transforming digital services to provide an online detail correction service 
• Rolling out the Centralised Pension Payment System (CPPS), allowing EPS pensioners to access their pension from any bank, at any branch across India
• Launching an improved grievance redressal mechanism to address member concerns more effectively
• Upgrading e-Office to process cases quickly
• Introducing SPARROW for online performance appraisals
• Revamping the Revamped Electronic Challan-cum-Return (ECR) system to enable separation of return filing and payment, system-based validations to reduce errors, auto-calculation of interest and damages, mandatory payment of interest with contributions and month-wise sequential filing. 
• Making death claim settlements easier for nominees

This transformation of EPFO services is expected to benefit over 30 crore EPFO members across India.

“A big effort to de-clog EPFO is under way,” said Prime Minister’s Economic Advisory Council (EAC-PM) member Sanjeev Sanyal in August last year. “No easy task. Look forward to feedback once this is launched and the system stabilises.”

EPF money via UPI

The EPFO will soon allow its members to withdraw their provident fund (PF) money through Unified Payments Interface (UPI), directly transferring it to their bank accounts, a senior government source told PTI recently. 

The labour ministry is working to make withdrawals easier. Currently, EPFO members have to file a withdrawal claim to access their funds. 

While the EPFO simplified the process last year by categorising withdrawal provisions into three categories (essential needs, housing and special circumstances) and also allowed members to withdraw under special circumstances without having to specify any reason, the withdrawal process is still time-consuming. 

Even with digitisation, auto-settlement mechanisms and other reforms, members face delays, as the EPFO settles over five crore claims every year.

Under the new system, EPFO members would be able to withdraw a permitted portion of their EPF money directly into their bank accounts using UPI. They will be able to view their eligible EPF balance available for withdrawal and transfer it to their bank accounts. 

According to the PTI report, some of the funds (out of the EPF balance) will be frozen, while members will be able to withdraw a substantial part through UPI.

To earn interest, EPFO members are required to maintain at least 25% of the total contributions in their EPF accounts. 

This UPI withdrawal facility is expected to be rolled out by April, making it a major step towards the modernisation of EPFO services and gearing up for the launch of EPFO 3.0. In 2025, the EPFO brought many changes to its system, including an enhanced settlement process, pension reforms, the Vishwas Scheme, etc. 

As per a report in the Economic Times, the EPFO is mulling launching a separate social security fund for unorganised workers, different from the fund for gig and platform workers. 

A core banking solution, AI-powered and technologically driven services can help EPFO offer efficient services to its growing pool of subscribers and manage the large corpus under pressure.