EPFO Updates: ₹5 Lakh Auto-Settlement, UPI & ATM Withdrawals Coming Soon
EPFO to raise the auto-settlement limit to ₹5 lakh, introduce UPI and ATM withdrawals by mid-2025, and streamline claim processes for faster access to funds.
kowshik Reddy
The Employees' Provident Fund Organization (EPFO) has made proclamations recently regarding certain good practices, intending to enhance the experience of its 7.5 crore members.
Increase in Auto-Settlement Limit
The EPFO has proposed to raise the limit of auto settlement in advance claims from the present limit of ₹1 lakh to an enhanced limit of ₹5 lakh. This proposal was approved by Sumita Dawra, Secretary, Ministry of Labour and Employment, in the 113th meeting of the Executive Committee of the Central Board of Trustees (CBT) held on March 28 in Srinagar. The recommendation still awaits final approval from the CBT. If approved, a member shall be able to draw a maximum of ₹5 lakh through the auto-settlement mode and provide greater accessibility to finances during emergent situations.
Integration of UPI and ATM Withdrawals
With the aim of funding access, the EPFO will introduce instant withdrawal of provident fund (PF) by Unified Payments Interface (UPI) and Automated Teller Machines (ATMs), which should be functional by mid-2025. The initiative seeks to do away with gradient procedures and processes so that members can gain access to their PF savings as and when they need them.
Expanded Auto-Mode Claim Settlements
The EPFO claim auto-mode processing has been enlarged to cover education, marriage, and housing advance claims, adding to the present claims for sickness and hospitalization. It is believed that this new measure will enhance the pace at which claims are settled, where most claims will be settled within three days, so that members can be given timely financial assistance.
Simplified Claim Processes
To further simplify the claim process, the EPFO has reduced validation procedures from the previous formalities of 27 right down to 18, and it is going to further land up with simplification to six. Meanwhile, upfront validations have been brought about to guide members concerning the eligibility criteria and admissibility of claims so as to minimize ineligible claims.
These developments reflect the EPFO's determination to enhance the experience of its users, offer financial safety, and adapt to technological advances so as to provide its members with even better service.
