The Employees’ Provident Fund Organisation (EPFO) is preparing for a major digital overhaul with the launch of EPFO 3.0, a next-generation technology platform aimed at making provident fund services faster, more accessible, and bank-like in operation. The upcoming upgrade is expected to fundamentally change how crores of EPF members access withdrawals, manage accounts, and raise service requests.
What Is EPFO 3.0?
EPFO 3.0 is being positioned as a full-scale transformation of EPFO’s technology architecture, moving away from legacy systems to a core banking–style backend, similar to those used by commercial banks. According to officials cited in the report, the overhaul will:
- Replace the existing EPFO portal with a new unified digital platform
- Enable centralised processing of services across India
- Support large-scale expansion under the Labour Codes, including coverage of unorganised workers
Why EPFO Is Moving to a Core Banking System
EPFO currently manages:
- Nearly 8 crore active members
- A corpus of approximately ₹28 lakh crore
With the expected expansion of social security coverage, the existing IT systems are considered insufficient to handle future volumes. A core banking solution (CBS) is seen as critical to ensure:
- Real-time account updates
- Faster settlements
- Location-agnostic grievance resolution
Under EPFO 3.0, members will be able to get services resolved from any EPFO office, irrespective of where the account is registered.
UPI-Based PF Withdrawals: What to Expect
One of the most anticipated features of EPFO 3.0 is PF withdrawal through UPI. As per the report:
- EPFO is working to enable withdrawals via BHIM/UPI platforms
- The interface will display:
- Total PF balance
- Eligible withdrawal amount
- Mandatory 25% minimum balance
- Initial discussions suggest a ₹25,000 per transaction cap, which may be revised later
The UPI-linked withdrawal facility is expected to be rolled out first under EPFO 2.0, with full integration under EPFO 3.0.
Simplified Withdrawal Framework Continues
The EPFO 3.0 framework builds upon recent reforms that:
- Reduced PF withdrawal categories from 13 to 3
- Essential needs (illness, education, marriage)
- Housing needs
- Special circumstances
- Mandated maintenance of a 25% minimum PF balance
- Allowed partial and premature withdrawals during unemployment, subject to conditions
AI-Powered Vernacular Language Support
To improve accessibility, EPFO 3.0 will rely on AI-based language translation tools, including Bhashini, developed by the Ministry of Electronics and Information Technology. This will allow EPFO to:
- Communicate with members in regional languages
- Improve understanding among workers unfamiliar with English or Hindi
- Reduce errors and grievances caused by language barriers
New IT Platform: Tender to Be Floated
EPFO is in the final stages of preparing a tender to appoint a technology partner responsible for:
- Implementing the new platform
- Operating and maintaining the system
Earlier, an Expression of Interest (EOI) had shortlisted major IT firms including Wipro, Infosys, and TCS. The final tender is expected to be floated shortly .
Where EPFO 2.0 Currently Stands
While EPFO 3.0 is being planned, EPFO 2.0 reforms are nearing completion:
- Revamped Electronic Challan-cum-Return (ECR) system has been rolled out
- Internal user management modules are live
- Only three modules remain pending – pension, claims, and annual accounts
Officials indicated that these remaining modules may go live within 1-2 months.
Easier Profile Corrections Already Enabled
As part of simplification measures:
- Members can now self-correct personal details without employer verification
- Editable fields include:
- Name, date of birth, gender
- Parents’ and spouse’s name
- Marital status
- Date of joining and exit
Between January and December 2025, around 32.23 lakh profile corrections were processed using this facility.
Conclusion
EPFO 3.0 represents a shift toward a bank-like, technology-driven social security system, faster, language-inclusive, and scalable. With features such as UPI withdrawals, AI-powered communication, a new portal, and centralised service delivery, the overhaul is expected to significantly improve ease of access for both existing members and millions of new beneficiaries in the coming years.
Source: News18