The Employees’ Provident Fund Organisation (EPFO) has announced a major update to make provident fund (PF) withdrawals easier for its 7.5 crore members. The auto-settlement limit under the Automated Settlement of Advance Claims (ASAC) system is being increased from ₹1 lakh to ₹5 lakh. This move aims to improve the “Ease of Living” for millions of employees. The decision was approved by Sumita Dawra, Secretary of the Ministry of Labour and Employment, during the 113th Executive Committee meeting of the Central Board of Trustees (CBT) in Srinagar.
Auto-Settlement Limit Increased to ₹5 Lakh
The new proposal, once finalized by the Central Board of Trustees, will allow EPFO members to withdraw up to ₹5 lakh under the automated claim settlement process. This system was introduced in April 2020 for medical emergencies and later expanded to include expenses for education, marriage, and housing needs.
EPFO had previously increased the auto-claim limit from ₹50,000 to ₹1 lakh in May 2024. Now, with the ₹5 lakh limit, claim processing will become even faster and more efficient.
Faster Claim Settlements with AI
With this change, withdrawals up to ₹5 lakh will be processed in as little as three days, and 95% of claims will be settled automatically without human intervention. This is made possible by EPFO’s AI-driven system, which ensures quick and accurate processing of claims.
EPFO has already processed a record 2.16 crore auto-claim settlements this financial year (as of March 6, 2025), a huge increase from 89.52 lakh settlements in 2023–24. The rejection rate has also dropped from 50% to 30%, making the process smoother for members.
Simplified Documentation for PF Withdrawals
To further streamline the PF withdrawal process, EPFO has reduced the number of validation formalities from 27 to 18, with a target of bringing it down to just six in the future. This will make the process faster and less complicated for employees.
UPI Integration for Instant PF Withdrawals
In a major move, EPFO is planning to integrate Unified Payments Interface (UPI) for PF withdrawals. Soon, members will be able to receive their PF funds directly through apps like Paytm, Google Pay, and PhonePe.
This change, expected to roll out by May or June 2025, will speed up claim settlements from 2–3 days to just minutes. It will also reduce rejections and improve transparency.
Conclusion
The increase in the auto-settlement limit to ₹5 lakh, the use of AI for faster processing, and the integration of UPI for instant withdrawals mark a significant improvement in EPFO’s services. These changes will benefit millions of employees, making PF withdrawals faster, easier, and more efficient.
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