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EPFO raised the auto settlement claim limit from Rs 1 lakh to Rs 5 lakh for its 7.5 crore members. Sumita Dawra approved this at the 113th EC meeting.
Provident Fund members will soon be able to withdraw funds through UPI and ATM. (Image: News18/File)
The Employees Provident Fund Organisation (EPFO) has reportedly decided to increase the auto settlement of advanced claim (ASAC) limit from the current Rs 1 lakh to Rs 5 lakh to improve the ‘Ease of Living’ for its 7.5 crore members.
According to ANI report, this decision was approved by Sumita Dawra, Secretary, Ministry of Labour and Employment, during the 113th meeting of the Executive Committee (EC) of the Central Board of Trustees (CBT) held in Srinagar, Jammu and Kashmir on March 28.
EPFO Members To Withdraw Up To Rs 5 Lakh
Once the CBT approves the recommendation, EPFO members will be able to withdraw up to Rs 5 lakh through ASAC, as per ANI report.
The auto mode of claim settlement, introduced in April 2020 for illness-related advances, was previously enhanced from Rs 50,000 to Rs 1 lakh in May 2024. Additionally, EPFO has extended the auto mode settlement to include claims for education, marriage, and housing.
What Is Automated Claim Process?
The automated claim process ensures that 95 percent of claims are processed within three days. As of March 6, 2025, EPFO has achieved a historic high of 2.16 crore auto-claims settlements, up from 89.52 lakh in the 2023-24 financial year. The rejection rate for claims has significantly reduced from 50 percent to 30 percent.
Streamlining The Claim Settlement Process
EPFO has introduced an auto-claim solution where claims are processed by an IT system without human intervention. Validation formalities have been reduced from 27 to 18, with plans to decrease further.
The centralized IT-enabled member database ensures that claims with KYC, eligibility, and bank validation are processed automatically within 3-4 days. Claims not validated by the system undergo a second level of scrutiny and approval.
Introduction of UPI Withdrawals
In a groundbreaking move, EPFO plans to introduce PF withdrawals through Unified Payments Interface (UPI). Labour and Employment Secretary Sumita Dawra announced that the ministry has approved NPCI’s recommendation, allowing members to withdraw PF via UPI and ATM by the end of May or June this year. This initiative may also benefit members of other schemes like the General Provident Fund (GPF) and Public Provident Fund (PPF) of banks.
(With ANI Inputs)