The Employees' Provident Fund Organisation (EPFO) has recently taken major strides to enhance the efficiency and accessibility of its claim settlement process for millions of its members. In a bid to improve user experience, the EPFO is working on several initiatives, one of the most significant being the increase in the automatic settlement limit for withdrawals from Rs 1 lakh to Rs 5 lakh. This move is set to streamline the withdrawal process and reduce the time required for claim settlements, which will be highly beneficial to members, especially those with larger balances in their accounts.
The proposal to raise the Auto Settlement of Advanced Claims (ASAC) limit to Rs 5 lakh was approved during the 113th Executive Committee meeting of the Central Board of Trustees (CBT), which was held in Srinagar last week. Following final approval by the CBT, EPFO members will be able to use the automated claim system to withdraw up to Rs 5 lakh without needing manual intervention. This move will significantly reduce the processing time, allowing claims to be settled within three days, which marks a remarkable improvement in the overall efficiency of the system.
EPFO's automated claims settlement process has already demonstrated significant success. As of March 6, 2025, the EPFO successfully settled 2.16 crore auto-claims during the financial year, a massive increase compared to the 89.52 lakh claims settled in FY 2023-24. This surge in auto-settled claims highlights the growing adoption of the system and its effectiveness in reducing delays. In fact, the system has become so efficient that nearly 96% of corrections are automatically handled, without the need for any manual intervention. This not only speeds up the process but also reduces human error, ensuring a more accurate settlement for members.
The key to this efficiency lies in the centralised IT database used by EPFO. This database validates essential details such as KYC (Know Your Customer), eligibility, and bank account verification, all of which play an integral role in ensuring that the settlement process is seamless and error-free. With these improvements, the EPFO has succeeded in removing many of the barriers that traditionally made claim settlements cumbersome, thus bringing members one step closer to accessing their provident funds without unnecessary delays.
In addition to this groundbreaking improvement in claim settlement, EPFO is also planning a major upgrade in the way members can access their provident fund balances. The organization is working on integrating UPI and ATM withdrawals into the EPFO system, enabling members to withdraw their PF money just like any other bank transaction. This feature, which has been approved by the National Payments Corporation of India (NPCI), will give EPFO members the ability to instantly access their funds through UPI and ATMs without the need for visiting an office or dealing with lengthy paperwork.
This new facility, expected to be launched by May or June 2025, promises to make it much more convenient for members to manage their provident fund accounts. By enabling PF withdrawals through UPI and ATMs, the process will mirror the ease of accessing funds through a regular bank account. This feature will not only benefit EPFO members but could also be extended to other public schemes such as the General Provident Fund (GPF) and the Public Provident Fund (PPF), offering a broader range of users increased convenience.
By introducing these features, EPFO is setting a precedent for how financial institutions can improve user experience in the digital age. The automation of claim settlements and the upcoming UPI and ATM withdrawal options signal a broader trend in India towards making financial systems more accessible, transparent, and efficient.
These upgrades are expected to lead to more satisfied members, as the ease of managing provident fund accounts will make it easier for individuals to plan for their future savings. The introduction of these technologies will also help reduce the strain on EPFO’s physical infrastructure, freeing up resources that can be used to further improve services in other areas.
Ultimately, these reforms by the EPFO are designed to benefit millions of working individuals, ensuring that they can access their hard-earned savings quickly and securely, and with minimal hassle. As the implementation of these features progresses, EPFO is expected to continue its journey towards becoming one of the most user-friendly and efficient social security systems in the country.
