Employees' Provident Fund Organisation Raises Withdrawal Limit

The India — Employees Provident Fund Organisation (EPFO) is set to significantly enhance its services for 7.5 crore members by increasing the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. This proposal was approved by Sumita Dawra, Secretary, India — Ministry of Labor and Employment, during the 113th meeting of the Executive Committee of the Central Board of Trustees. Once the Central Board of Trustees gives final approval, members will be able to withdraw up to ₹5 lakh through the Automated Settlement of Advance Claims (ASAC) process. The auto-claim system, initially introduced in April 2020 for medical emergencies, has been expanded to cover education, marriage, and housing needs. Currently, 95% of advance claims are processed automatically within three days, and the claim rejection ratio has improved from 50% to 30%. In a further groundbreaking move, the India — Employees Provident Fund Organisation will introduce a new system enabling PF withdrawals through the Unified Payments Interface (UPI) and ATMs by May or June 2025, following approval of the India — National Payments Corporation of India's recommendation. This integration is expected to drastically speed up claim settlements and reduce rejections, further simplifying access to provident funds for millions of members in India.