India’s EPFO-based retirement savings system is set for a major tech makeover. The Employees’ Provident Fund Organisation (EPFO) is preparing to roll out a new EPFO 3.0 upgrade, a large-scale overhaul that promises a new portal. The EPFO 3.0 is likely to be rolled out with new backend software and AI-powered language tools to serve crores of members across the country. The move, reported by Indian Express citing a senior government official, aims to make provident fund services faster, more accessible and closer to how banks operate today.
The proposed changes could affect how nearly eight crore active members track accounts, raise grievances and withdraw money, as EPFO prepares for a wider role under upcoming labour reforms.
What is EPFO 3.0?EPFO 3.0 is being designed as a complete reset of the organisation’s technology backbone. The idea is to shift from patchwork upgrades to a core banking-style system, similar to what commercial banks use to handle large volumes in real time.
As per the Indian Express report, there will be a complete revamp under EPFO 3.0, new architecture, core banking solution at the backend. The entire system is likely to be changed including the portal. For members, this could mean fewer location-based hurdles. Complaints and service requests may be handled from any EPFO office, regardless of where the account was originally registered.Why EPFO is moving to a core banking modelThe timing of EPFO 3.0 is closely linked to the rollout of new Labour Codes. Once implemented, EPFO’s coverage is expected to go beyond the organised workforce and extend to unorganised workers on a much larger scale.
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Officials are also exploring the possibility of EPFO managing a separate social security fund for unorganised workers, distinct from the fund meant for gig and platform workers.
At present, EPFO manages a corpus of around ₹28 lakh crore. With growing membership and new responsibilities, a core banking solution is seen as necessary to keep the system from slowing down under pressure.EPF withdrawal via UPI
EPFO is working on allowing members to withdraw funds through UPI using the BHIM app. The system is expected to show total balance, eligible withdrawal amount and the mandatory minimum balance of 25%. Internal discussions suggest an initial cap of Rs 25,000 per transaction.
This follows a policy change last October, when EPFO reduced withdrawal categories from 13 to three, essential needs, housing needs and special circumstances, while introducing rules on minimum balance and premature settlement during unemployment.
AI tools to speak to members in their own language
One of the quieter but significant changes under EPFO 3.0 is the plan to use AI-based translation tools like Bhashini to communicate with members in regional languages.
Bhashini, developed by the Ministry of Electronics and Information Technology, is expected to help EPFO reach members who struggle with English-only digital systems.
To build and run the new digital system, EPFO is preparing to float a tender for an agency that will implement and maintain the platform across social security schemes.
Last year, EPFO had already shortlisted Wipro, Infosys and TCS after inviting an Expression of Interest, signalling the scale of the project.
Where EPFO 2.0 stands right now
Even as EPFO 3.0 takes shape, the existing EPFO 2.0 upgrades are nearing completion. The much-awaited UPI-based withdrawal feature is expected to go live by April, with only a few modules left.Easier profile corrections already rolled outSome changes are already visible on the ground. EPFO has enabled self-correction of personal details without employer approval. Members can update information such as name, date of birth, marital status and employment dates directly.
Between January and December 2025, 32.23 lakh profile corrections were processed through this facility.
With EPFO 3.0, the organisation is trying to move away from slow, office-bound processes towards a system that works more like a bank — quicker, language-friendly and built to handle the next wave of workers entering India’s social security net.