EPFO to raise auto claim limit to ₹5 lakh, bringing faster PF access for 7.5 crore members: Report

In a major push to simplify provident fund access for its 7.5 crore members, the Employees’ Provident Fund Organisation (EPFO) is raising the auto-settlement limit under its advanced claim system fivefold — from ₹1 lakh to ₹5 lakh. The move, aimed at expanding the “Ease of Living” for millions, was approved by Sumita Dawra, Secretary, Ministry of Labour and Employment, during the 113th Executive Committee meeting of the Central Board of Trustees held last week in Srinagar, according to a ANI report.

The proposal, once cleared by the Central Board of Trustees (CBT), will enable EPFO members to withdraw up to ₹5 lakh through the Automated Settlement of Advance Claims (ASAC), the report added. The auto-mode was initially rolled out in April 2020 for medical emergencies and has since expanded to include education, marriage, and housing needs.

Back in May 2024, EPFO had raised the claim limit from ₹50,000 to ₹1 lakh. With the new proposed increase, withdrawals of up to ₹5 lakh would be processed in as little as three days — 95 percent of them without any human intervention, thanks to EPFO’s AI-driven auto-claim solution.

EPFO logged a record 2.16 crore auto-claim settlements this financial year (as of March 6, 2025), a massive leap from 89.52 lakh in 2023–24. Rejection rates, too, have fallen sharply — from 50 percent to 30 percent.

To streamline processes further, the number of validation formalities required for PF withdrawals has already been cut from 27 to 18. EPFO now aims to bring it down to just six.

In another major shift, EPFO is set to integrate the Unified Payments Interface (UPI) into its withdrawal system. Members will soon be able to receive their PF funds directly through apps like Paytm, Google Pay and PhonePe. As per Sumita Dawra, the Ministry has cleared NPCI’s proposal, and the rollout is expected by May or June 2025.

The UPI option is expected to significantly speed up claim settlements — from the current 2–3 days to possibly just minutes — while also reducing rejections and boosting transparency. The initiative may eventually be extended to schemes like the General Provident Fund (GPF) and Public Provident Fund (PPF).