New Delhi: There is good news for people working in the private sector. The Employees Provident Fund Organization (EPFO) has taken a big decision. Now the limit of auto-settlement of advance claim has increased.
This limit has increased from Rs 1 lakh to Rs 5 lakh. According to sources, this step will ease the 7.5 crore members of EPFO. Secretary of the Ministry of Labor and Employment Sumita Dawra approved this proposal. This approval was given in the 113th meeting of the Central Board of Trustees (CBT) in Srinagar, Jammu and Kashmir. The meeting was held on March 28.
Sumita Dawra said that this change will make the lives of crores of PF members easier. After this approval, the recommendation will be sent for final approval of CBT. After getting the approval, EPFO members will be able to withdraw up to Rs 5 lakh through auto-settlement process. Auto settlement claim is a system through which claims get settled automatically. It takes less time and there is less human intervention. The auto-settlement process of EPFO has become very fast. As of March 6, 2025, a record 2.16 crore auto-claims were processed. Last year this figure was only 89.52 lakh. Now 95% of the claims get settled automatically within three days.
what will be the benefit
Central Provident Fund Commissioner Ramesh Krishnamurthy said that the auto-settlement process has made claim settlement very easy. This has reduced time and human intervention. We are committed to improving this process even further. Our goal is that all members can easily withdraw PF funds. EPFO has also increased the number of categories for which advance claims can be automatically settled. Now claims for illness, education, marriage, home and other needs will also be automatically settled. Due to improvement in the system, the rate of claim rejection has also reduced. Last year this rate was 50%, which has come down to 30% this year.
UPI withdrawal for PF members
Along with this, EPFO will soon facilitate withdrawal of Provident Fund (PF) through Unified Payments Interface (UPI) and ATM. The Ministry of Labor and Employment has approved this scheme. Members will be able to access their funds through UPI and ATM by the end of May or June 2025. Sumita Dawra said that this new system will make it even easier for members to access their PF savings instantly through UPI and ATM. This is an unprecedented move that will set a precedent for other government savings schemes, such as the General Provident Fund (GPF) for government employees and the Public Provident Fund (PPF) for bank customers.
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