EPFO Shares Important Update: More Money, Fast Withdrawal

EPFO Shares Important Update: The Employees Provident Fund Organisation (EPFO) has announced measures to enhance the ease of living for its 7.5 crore members. This includes significant revisions to claim settlement limits and processes.

The auto settlement of the advanced claim (ASAC) limit has been increased fivefold—from Rs 1 lakh to Rs 5 lakh—with approval from the Ministry of Labour and Employment. This recommendation now awaits the final nod from the Central Board of Trustees (CBT), according to ANI report.

Key Decisions in the Srinagar Meeting

At the 113th Executive Committee meeting in Srinagar, Sumita Dawra approved the proposal, which included advancements in auto-mode claims for various purposes, such as education, marriage, housing, and illness.

Historical Growth in Auto-Claims

EPFO recorded a historic high of 2.16 crore auto-claims processed in the current financial year, a remarkable increase from 89.52 lakh in 2023-24. Automation has also reduced the claim rejection ratio from 50% to 30%.

The number of validation formalities has been reduced from 27 to 18, with further plans to reduce it to 6. An IT-enabled solution ensures that valid claims are processed automatically, reducing settlement time to 3-4 days.

Introduction of UPI-Based PF Withdrawals

In a big move, EPFO members will soon be able to withdraw their Provident Fund (PF) through Unified Payments Interface (UPI) and ATMs, starting as early as May or June this year. This initiative may also expand to General Provident Fund (GPF) and Public Provident Fund (PPF) schemes.