As per news reports, the EPFO will introduce a new system for PF withdrawals via the Unified Payments Interface (UPI). Labour and Employment Secretary Sumita Dawra approved NPCI’s recommendation. Members may withdraw PF through UPI and ATM by May or June. This initiative by EPFO aims to simplify and expedite PF withdrawals, enhancing convenience for its members.
The auto mode of claim settlement was first introduced in April 2020. This was initially for advance illness claims. In May 2024, the limit increased from ₹50,000 to ₹1 lakh.
EPFO has expanded auto mode to education, marriage, and housing. Previously, only illness/hospitalisation withdrawals were allowed.
Auto-mode claims are processed within 3 days. 95% of claims are now automated. The EPFO achieved 2.16 crore auto-claim settlements in FY 2024-25. This is up from 89.52 lakh in FY 2023-24. The claim rejection ratio has reduced from 50% to 30%.
The EPFO is simplifying claim settlement processes by introducing an IT system. This has eliminated human intervention and reduced the number of validation formalities from 27 to 18. Any claim with KYC, eligibility, and bank validation is processed automatically. The government further aims to reduce the number of validation formalities to 6.
Claim settlement periodicity has been reduced from 10 days to 3-4 days for EPFO members. Upfront validations guide members on eligibility. This ensures members do not file ineligible claims. To simplify the process, member databases are being centralised under Centralised IT Enabled. Claims not validated by systems undergo a second scrutiny level.
The Employees Provident Fund Organisation (EPFO) is enhancing the auto settlement of advanced claim (ASAC) limit. This aims to improve the ‘Ease of Living’ for its 7.5 crore members. The limit is being increased by 5 times, from ₹1 lakh to ₹5 lakh.
Sumita Dawra, Secretary of the Ministry of Labour and Employment, has approved the proposal. The approval occurred in the 113th meeting of the Executive Committee (EC) of the Central Board of Trustees (CBT). This was held in Srinagar, Jammu and Kashmir and was attended by the Central Provident Fund Commissioner, Ramesh Krishnamurthi.
The recommendation will now be submitted for CBT approval. After approval, members can withdraw up to ₹5 lakh through ASAC.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Apr 1, 2025, 2:36 PM IST
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