In a major transfer to boost the benefit of dwelling 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, permitted 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 underneath ASAC
Following the CBT’s remaining approval, EPFO members will have the ability to withdraw as much as Rs 5 lakh underneath the auto settlement of advance claims (ASAC). This technique, launched in April 2020 for medical emergencies, was later expanded in Might 2024, elevating the withdrawal restrict from Rs 50,000 to Rs 1 lakh.
The EPFO has now prolonged the auto settlement facility to cowl extra classes, together with training, 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.
Based on official sources, EPFO processed a file 2.16 crore auto claims as of March 6, 2025, in comparison with 89.52 lakh claims in 2023-24. The declare rejection charge has additionally dropped to 30 % from 50 % within the earlier 12 months.
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 deliver them down to only six. The complete auto-settlement mechanism is pushed by a complicated IT system, guaranteeing 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 only 3-4 days.
New system for provident fund withdrawals by UPI
In a serious technological development, the EPFO can also 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 permitted the Nationwide Funds Company of India’s (NPCI) suggestion, permitting EPFO members to withdraw their PF by UPI or ATMs by Might or June this 12 months. This improvement might probably prolong to different schemes, together with the Normal Provident Fund (GPF) for presidency workers and the Public Provident Fund (PPF) managed by banks.
