By buld_online 
The Employees Provident Fund Organisation (EPFO) has announced a significant increase in the auto-settlement limit for advance claims, raising the threshold from Rs 1 lakh to Rs 5 lakh. This move is designed to facilitate quicker financial access for EPFO members, particularly in urgent situations such as medical emergencies or home renovations. The change, supported by Union Labour & Employment Minister Mansukh Mandaviya, is part of an effort to ensure seamless and timely support for workers needing immediate financial assistance. “The decision is aligned with our commitment to provide seamless and timely support to workers. This will empower members to access larger amounts faster in times of need,” said Mandaviya.
The introduction of the auto-settlement facility dates back to the COVID-19 pandemic period, when it provided crucial relief by allowing members to access part of their provident fund as an advance amidst the economic turmoil. This facility has continued as a permanent feature of EPFO’s offerings and is now being expanded to accommodate larger withdrawal amounts. The upgraded system enables the funds to be credited directly to the claimant’s bank account, typically within a few days, provided eligibility conditions are satisfied.
The increased limit allows members to withdraw up to Rs 5 lakh instantly, eliminating the previous requirement for manual verification for amounts exceeding Rs 1 lakh. This is especially beneficial in situations demanding immediate funds, such as medical emergencies or educational expenses, where the funds can be automatically approved. By bypassing the need for manual approvals, the process becomes more streamlined and efficient, significantly reducing the waiting time for claimants.
Subscribers must ensure that their Know Your Customer (KYC) information is up-to-date to maximise eligibility for this service. All necessary documents, such as Aadhaar, PAN, and bank account details, need to be linked to the EPF account. While full withdrawal of the provident fund balance is not permitted before retirement, partial withdrawals are allowed under specific conditions such as marriage, education, or home renovation. This ensures that members have access to their funds when they need them most, without unnecessary delays.
The EPFO’s push towards automatic settlements aims to make the withdrawal process hassle-free, removing the necessity for subscribers to visit EPFO offices. This is particularly advantageous for those with substantial provident fund savings who require urgent access to their funds. The initiative is expected to significantly benefit lakhs of EPFO subscribers across the country by providing them with improved financial flexibility.
The automatic increase in the withdrawal limit does not require any action from members. Instead, it seamlessly integrates with the existing system, ensuring that eligible subscribers can take advantage of the new limit without additional administrative procedures. This enhancement reflects the EPFO’s ongoing efforts to optimise its service delivery to better meet the needs of its members. By continuously improving its processes, the EPFO is committed to supporting its members effectively and efficiently.