To enhance the ease of living for its 7.5 crore members, the Employees’ Provident Fund Organisation (EPFO) is set to increase the auto-settlement limit for provident fund (PF) withdrawals from ₹1 lakh to ₹5 lakh.
This decision, approved during the 113th Executive Committee meeting of the Central Board of Trustees (CBT) held in Srinagar, Jammu and Kashmir, marks a major milestone in simplifying PF access and streamlining the claim settlement process.
Key Highlights of the Initiative: Faster and More Efficient EPFO Claim Settlements
The proposed increase in the auto-claim limit is part of EPFO’s broader strategy to modernize its operations and improve member services.
The auto-mode claim settlement system, introduced in April 2020 for medical emergencies, has since expanded to include categories such as education, marriage, and housing.
With the new limit, members will be able to withdraw up to ₹5 lakh through the Automated Settlement of Advance Claims (ASAC) system, significantly reducing the time and effort required for claim processing.
EPFO’s auto-claim system leverages advanced IT tools to process claims without human intervention.
This technology-driven approach has already reduced the claim settlement period from 10 days to just 3–4 days for eligible advances.
In the current financial year, EPFO achieved a record 2.16 crore auto-claim settlements as of March 6, 2025, a substantial increase from 89.52 lakh claims in 2023–24.
The rejection rate for claims has also dropped from 50% to 30%, reflecting the system’s improved efficiency.
Simplified Validation Processes: Integration of UPI for PF Withdrawals
To further streamline the claim settlement process, EPFO has reduced the number of validation formalities required for PF withdrawals from 27 to 18, with plans to bring it down to just six.
New upfront validations have been introduced to guide members on eligibility and admissibility, ensuring that ineligible claims are not filed.
This simplification will enhance transparency and reduce delays in claim processing.
EPFO plans to integrate the Unified Payments Interface (UPI) into its withdrawal system in another groundbreaking development.
Members will soon be able to receive their PF funds directly through popular UPI apps like Paytm, Google Pay, and PhonePe.
This initiative, expected to roll out by May or June 2025, aims to further expedite claim settlements, potentially reducing the processing time to just minutes.
The UPI-based system may also serve as a pilot project for other schemes, such as the General Provident Fund (GPF) and Public Provident Fund (PPF).
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