EPFO Revolutionizes PF Withdrawals with Enhanced Auto Settlement and UPI Integration

The Employees Provident Fund Organisation (EPFO) is enhancing the 'Ease of Living' for its 7.5 crore members by raising the auto settlement limit for advanced claims from Rs 1 lakh to Rs 5 lakh. The move includes the upcoming introduction of PF withdrawals via Unified Payments Interface (UPI) and ATMs.

The Employees Provident Fund Organisation (EPFO) has announced a significant enhancement to its auto settlement of advanced claims, raising the limit from Rs 1 lakh to Rs 5 lakh. The decision, approved by Sumita Dawra, Secretary of the Ministry of Labour and Employment, was finalized during the Central Board of Trustees' (CBT) Executive Committee meeting in Srinagar.

Once the CBT approves, members can withdraw up to Rs 5 lakh through the auto settlement process. Initiated in April 2020 for illness-related claims, this system has now expanded to include education, marriage, and housing. Previously, withdrawals were limited to hospitalisation events only. EPFO achieved a record-breaking 2.16 crore auto-claim settlements by March 2025.

The EPFO reported advancements in automating claims processing, with 95% now handled efficiently within three days. The organisation plans to further simplify processes by reducing validation steps and integrating member databases with IT tools. In a major breakthrough, PF withdrawals via the Unified Payments Interface (UPI) and ATMs are expected to be piloted by mid-year.

(With inputs from agencies.)