PF: The Employees’ Provident Fund Organization (EPFO) is making it more convenient for employed individuals to access their PF funds in the near future. The EPFO anticipates that the majority of new PF withdrawal requests from employees will be processed either on the same day or within a maximum of two days, resulting in a quick turnaround time of 24 to 48 hours.
The Central Provident Fund Commissioner (CPFC) of EPFO, Ramesh Krishnamurthy, mentioned that the organization has successfully cleared most of the pending claim settlements. With the new automated system, around 90 percent of claims are being settled automatically. Krishnamurthy expressed confidence that most member claims will be processed swiftly, aiming for same-day or two-day settlements. Previously, online claims with EPFO typically took seven to 10 working days to process after completion of KYC, with delays of up to 15 days at times.
Krishnamurthy also revealed plans to introduce a PF claim settlement feature through the BHIM app, enabling direct transfer of claims into the UPI-linked bank accounts of employees. This new system is expected to go live within a month. Regarding a potential increase in the current 8.25% EPF interest rate, Krishnamurthy stated it was premature to speculate. He highlighted the successful disbursement of interest at the rate of 8.25%, amounting to around ₹1.44 lakh crore, as a significant achievement for EPFO. The government recently approved an 8.25% interest rate on EPF, with the interest payment process usually concluding in October or November after government approval.
Furthermore, the implementation of Centralized IT-based Services (CITES) was announced to enhance services. Formerly, EPFO’s system was decentralized, with regional offices maintaining separate databases. Now, all member records have been consolidated into a centralized database, enabling members to access services from any authorized center nationwide, similar to banking services that do not require customers to visit specific branches.
According to reports ( REF ) the new system will reduce paperwork and people’s work will be done without any human intervention. Apart from this, the joint declaration form for KYC update can also be submitted digitally for verification. Due to these facilities, settlement of old inactive EPF accounts will be very fast, transparent and hassle-free. With this, employees who change jobs frequently will now be free from running around offices and long procedures.