There is a great news for people working in the private sector. The Employees Provident Fund Organization has taken an important decision. Now the limit of auto-settlement of advance claim has been increased. This limit has been increased from ₹ 1 lakh to ₹ 5 lakh directly. According to sources,this move will provide great relief to the 7.5 crore members of EPFO.
Sumita Dawra,Secretary of,the Ministry of Labour and Employment,has approved this proposal. This approval was given on March 28 in the 113th meeting of the Central Board of Trustees held in Srinagar,Jammu and Kashmir. After this decision,withdrawing money from PF members will become easier and faster than ever. So let us know what benefits you will get from this big change and what new is going to be added to the rules of PF withdrawal.
Auto-settlement up to ₹ 5 lakh
Sumita Dawra,Secretary,Ministry of Labour and Employment,said that this change will make the life of crores of PF members easier. After this approval,the recommendation will be sent for final approval of the CBT. After getting approval,EPFO members will be able to withdraw up to ₹ 5 lakh through the auto-settlement process. Auto settlement claim is a system by which claims are settled automatically.
It takes less time and there is also less human intervention. EPFO’s auto-settlement process has already gained momentum. As of March 6,2025,a record 2.16 crore auto-claims were settled. Last year this figure was only 89.52 lakh. Now 95% of the claims are being settled automatically within three days.
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What will be the benefit of auto-settlement
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 making this process even better. 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 settled automatically. Now claims made for illness,education,marriage,home and other needs will also be settled automatically. Due to improvements in the system,the claim rejection rate has also come down. This rate was 50% last year,which has come down to 30% this year.
UPI withdrawal for PF members
Along with this,EPFO will soon provide the facility of withdrawal of provident fund through Unified Payments Interface and ATM. The Ministry of Labour 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 also set a precedent for other government savings schemes,such as General Provident Fund for government employees and Public Provident Fund for bank customers. Now withdrawing PF money will be a piece of cake.
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