EPFO members take note! Advance withdrawal limit via auto settlement mode hiked to Rs 5 lakh; ATM withdrawals for PF accounts soon
EPFO advance withdrawal limit through auto settlement mode hiked! Labour Minister Mansukh Mandaviya announced on Tuesday an increase in the auto-settlement threshold for provident fund advance withdrawals from Rs 1 lakh to Rs 5 lakh.This enhancement allows EPFO (Employees’ Provident Fund Organisation) members to receive their advance withdrawal claims up to Rs 5 lakh through automatic processing within three days.Currently, the auto-settlement system, which guarantees a three-day processing timeline, is applicable only for claims up to Rs 1 lakh.
EPFO Withdrawal Through Auto Settlement Mode
According to a PTI report, the Union Minister announced that EPFO has raised the auto-settlement threshold for advance claims from Rs 1 lakh to Rs 5 lakh, ensuring swifter access to funds for its members, particularly during emergencies.The minister highlighted that this significant improvement in service delivery would positively impact hundreds of thousands of subscribers.Also Read | ITR filing last date FY 2024-25 extended: Will penal interest be charged if final tax paid after July 31? Here’s what experts sayEPFO, with its subscriber base exceeding 7 crore members, initially launched the online auto-settlement facility for advance claims whilst responding to the COVID-19 pandemic, aiming to provide rapid financial support to those experiencing monetary difficulties.The service now encompasses advance claims for medical needs, educational expenses, matrimonial purposes and residential requirements.The automated processing system handles these claims independently, without manual intervention, delivering swift and clear-cut outcomes.In FY25, the EPFO achieved a significant milestone by processing 2.34 crore advance claims through automated settlement, showing a 161 per cent increase from 89.52 lakh claims in FY24, according to the minister’s statement.The minister highlighted that automated settlements comprised 59 per cent of total advance claims in 2024-25, up from 31 per cent in 2023-24.Also Read | Applying for PAN Card? Aadhaar to be mandatory for Permanent Account Number; new rule likely from July 1, 2025
EPF ATM Withdrawals
Meanwhile, EPFO members could soon access their EPF funds directly through ATMs or UPI after connecting their bank accounts with their EPF accounts.A senior official told PTI that the labour ministry is developing a system where a portion of EPF would remain locked whilst a significant amount would be accessible for withdrawal via bank accounts using UPI or ATM debit cards.The official noted that technical software issues are currently being addressed to enable this system’s implementation.Currently, EPFO subscribers must submit withdrawal applications to access their EPF funds, which involves a lengthy process.
