EPFO: The Employees’ Provident Fund Organization (EPFO) has made a significant decision impacting its 75 million members. The organization has proposed raising the auto settlement limit for advance claims (ASA) from ₹1 lakh to ₹5 lakh. This initiative is expected to greatly benefit PF account holders. Sources indicate that Sumita Dawra, Secretary of the Ministry of Labor and Employment, endorsed this proposal during the 113th meeting of the Executive Committee (EC) of the Central Board of Trustees (CBT).

The proposal will now be forwarded for the final approval of the CBT. Once approved, EPFO members will have the ability to withdraw up to ₹5 lakh under the ASA. The Central Board of Trustees convened on March 28, 2025, in Srinagar, Jammu and Kashmir, with participation from EPFO’s Central Provident Fund Commissioner, Ramesh Krishnamurthy. This government decision aims to streamline and expedite the withdrawal process for EPFO members. The auto claim process for illness-related advance withdrawals was initiated by EPFO in April 2020, and in May 2024, the limit was raised from ₹50,000 to ₹1 lakh. The current proposal seeks to further increase this limit to ₹5 lakh. EPFO asserts that this auto-settlement feature will provide members with prompt and efficient service, particularly benefiting those who require funds in urgent situations.

In a significant development for India’s workforce, the Employees’ Provident Fund Organisation (EPFO) is set to introduce a new system for withdrawing provident fund (PF) through UPI and ATMs. Sumita Dawra, the Secretary of Labor and Employment, announced that the ministry has endorsed the proposal from the National Payments Corporation of India (NPCI). This new feature is expected to be operational by May or June 2025, potentially paving the way for similar services for the General Provident Fund (GPF) and Public Provident Fund (PPF) schemes available to government employees.

What advantages will EPFO members experience?

Streamlined and efficient withdrawals: Members can now withdraw amounts up to Rs 5 lakh without facing complex procedures.

Rapid claim processing: Claims will be resolved within a timeframe of three to four days.

Reduction of human involvement: The entire withdrawal process will be automated through an IT system.

Digital transaction capabilities: Direct fund transfers will be facilitated via UPI and ATMs.

Decrease in claim rejections: The enhanced verification system is expected to significantly lower the incidence of rejected claims.