PF Withdrawals: The Employees Provident Fund Organisation (EPFO) is expected to increase the withdrawal limit for provident fund (PF) claims to ₹5 lakh, up from the current ₹1 lakh. This change is aimed at providing greater financial flexibility to employees, particularly in emergencies.
The proposal to increase the auto settlement claim (ASAC) limit was approved by Sumita Dawra, Secretary of the Ministry of Labour and Employment. The decision was taken during the 113th meeting of the Executive Committee of the Central Board of Trustees (CBT). This move will allow eligible EPFO members to withdraw up to ₹5 lakh under the ASAC system, subject to final approval from the CBT.
EPFO introduced auto claim settlements in April 2020, initially allowing members to withdraw ₹50,000 for medical emergencies. In May 2024, this limit was raised to ₹1 lakh. The latest decision aims to further ease financial access for members.
Previously, withdrawals under the auto claim system were only allowed for illness or hospitalization. However, EPFO has expanded the eligibility criteria to include education, marriage, and housing, making it easier for members to use their PF savings for essential life expenses.
With advancements in EPFO’s IT systems, the claim settlement period has been significantly reduced. Earlier, claim processing took about 10 days, but with automation, this has come down to just 3 to 4 days. Additionally, the rejection rate for claims has dropped from 50% to 30%, indicating improved efficiency.
To further simplify the withdrawal process, the government has reduced validation formalities. Previously, 27% of claims required additional verification, but this number has now been reduced to 6%.
The government is also working towards streamlining EPFO’s operations through a centralized IT-enabled system. This will help in managing member databases more efficiently and ensure quicker claim processing.
Currently, claims that meet KYC, eligibility, and bank validation requirements are processed automatically. This initiative is part of the government’s broader efforts to improve digital services and make financial transactions seamless for employees.
This development is a significant step towards making provident fund withdrawals more accessible, reducing delays, and ensuring that employees can use their savings ef
ficiently when required.
Also Read:OYO Room Booking: Keep Your Aadhaar Details Safe with This Trick
Share
Kashmir's First Vande Bharat Express Launch by PM Modi
Mukesh Ambani’s Electricity Bill Per Month Will Leave You Shocked
