In a big transfer to boost the convenience of residing for over 7.5 crore members, the Staff’ Provident Fund Organisation (EPFO) has determined to extend the auto-settlement restrict for advance claims from Rs 1 lakh to Rs 5 lakh. The proposal, authorized by Labour and Employment Secretary Sumita Dawra, was mentioned within the 113th assembly of the Govt Committee (EC) of the Central Board of Trustees (CBT) held in Srinagar on March 28, information company ANI reported citing sources.
EPFO members will have the ability to withdraw as much as Rs 5 lakh below ASAC
Following the CBT’s remaining approval, EPFO members will have the ability to withdraw as much as Rs 5 lakh below the auto settlement of advance claims (ASAC). This method, launched in April 2020 for medical emergencies, was later expanded in Could 2024, elevating the withdrawal restrict from Rs 50,000 to Rs 1 lakh.
The EPFO has now prolonged the auto settlement facility to cowl further classes, together with schooling, marriage, and housing. Beforehand, auto-settlement was restricted to medical emergencies and hospitalisation. The system ensures speedy processing, with claims being settled inside three days.
In response to official sources, EPFO processed a document 2.16 crore auto claims as of March 6, 2025, in comparison with 89.52 lakh claims in 2023-24. The declare rejection price has additionally dropped to 30 p.c from 50 p.c within the earlier yr.
EPFO has diminished validation formalities from 27 steps to 18
To additional streamline the withdrawal course of, the EPFO has diminished validation formalities from 27 steps to 18, with plans to carry them down to simply six. The whole auto-settlement mechanism is pushed by a sophisticated IT system, making certain minimal human intervention. Claims with verified Know Your Buyer (KYC) particulars, eligibility, and financial institution validation are processed routinely, lowering the settlement time from 10 days to simply 3-4 days.
New system for provident fund withdrawals by way of UPI
In a significant technological development, the EPFO can be set to introduce a brand new system for provident fund withdrawals through Unified Funds Interface (UPI). Labour and Employment Secretary Sumita Dawra confirmed that the ministry has authorized the Nationwide Funds Company of India’s (NPCI) suggestion, permitting EPFO members to withdraw their PF by way of UPI or ATMs by Could or June this yr. This growth may doubtlessly lengthen to different schemes, together with the Basic Provident Fund (GPF) for presidency workers and the Public Provident Fund (PPF) managed by banks.
