EPFO makes PF withdrawals easier: Auto-claim limit raised to to Rs 5 lakh, UPI and ATM access coming soon
EPFO is revolutionizing PF withdrawals with a 5X hike in auto-claim limits (Rs 5 lakh), UPI/ATM withdrawals by June, and faster claim processing. The move boosts financial ease for 7.5 crore members, enhancing accessibility and efficiency.
In a major boost for its 7.5 crore members, the Employees' Provident Fund Organisation (EPFO) has decided to enhance the auto settlement of advance claim (ASAC) limit by five times—from the current Rs 1 lakh to Rs 5 lakh. This move aims to significantly improve the ‘Ease of Living’ for crores of salaried employees across India.
Sources confirmed that Sumita Dawra, Secretary, Ministry of Labour and Employment, approved the proposal during the 113th Executive Committee (EC) meeting of the Central Board of Trustees (CBT), held in Srinagar on March 28. The proposal now awaits final approval from the CBT before being implemented.
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Faster, Simpler PF Withdrawals
The auto-mode settlement of claims, introduced in April 2020 for medical advances, has seen continuous enhancements. In May 2024, EPFO raised the auto-settlement limit from Rs 50,000 to Rs 1 lakh. Now, the limit is set to jump to Rs 5 lakh, allowing members to access their funds more easily and quickly.
Additionally, EPFO has extended the auto-settlement facility to three more categories—education, marriage, and housing—beyond just illness/hospitalization. With 95% of claims now automated, settlements occur within just three days, compared to the previous 10-day timeline.
The organization achieved a record-breaking 2.16 crore auto-claim settlements as of March 6, 2025, up from 89.52 lakh in 2023-24. The claim rejection rate has also dropped significantly from 50% last year to 30% now.
UPI and ATM Withdrawals Coming Soon
In a groundbreaking development, EPFO members may soon be able to withdraw their provident fund through Unified Payments Interface (UPI) and ATMs. The Ministry of Labour and Employment has approved the National Payments Corporation of India’s (NPCI) recommendation, paving the way for seamless transactions. The facility is expected to roll out by May or June this year.
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Simplified Claim Process
EPFO has drastically reduced the number of validation formalities required for PF withdrawals—from 27 to 18—and now plans to bring it down further to just six. New IT-driven solutions ensure that claims with proper KYC, eligibility, and bank validation are processed automatically, minimizing human intervention.
Previously, claims took around 10 days for processing, but with the new centralized IT system, most eligible claims are now settled within 3-4 days. Claims that do not pass system validation are not outright rejected; instead, they go through a second level of scrutiny to minimize member inconvenience.
A Model for Other Provident Fund Schemes?
With the success of these reforms, experts believe this model could be extended to other savings schemes like the General Provident Fund (GPF) for government employees and the Public Provident Fund (PPF) managed by banks. If successful, this could mark a transformation in how provident fund withdrawals are managed across India.
The EPFO’s latest initiatives represent a massive leap in financial accessibility for millions of workers. By increasing the auto-claim settlement limit, expanding categories for advance withdrawals, reducing claim processing time, and introducing UPI and ATM withdrawals, the organization is redefining how Indians access their hard-earned savings. If approved by the CBT, these changes will make PF withdrawals faster, more secure, and hassle-free.
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