The Central Government has taken an important decision to make the standard of living of 7.5 crore members of the Employees Provident Fund Organization (EPFO) easier. Under this, the limit of auto settlement advance claim (ASAC) has been increased to Rs 5 lakh. It has been decided to make it 5 lakhs.
Currently this limit is Rs. It is 1 lakh. In the 113rd meeting of the Executive Committee of the Central Board of Trustee Board last week, a proposal to increase the limit of auto settlement of PF withdrawal from Rs 5 lakh to Rs 1 lakh was passed. 1 lakh to Rs. Sumitra Dawada, Secretary, Ministry of Labor and Employment, sanctioned an amount of Rs 5 lakh. This step will make the standard of living of crores of PF members easier. The committee met in Srinagar, Jammu and Kashmir, where the Central Provident Fund Commissioner of EPFO Ramesh Krishnamurthy was present.
Now this proposal will be sent to the Central Board of Trustee for approval. After approving the proposal by the trustee board, EPFO members will be able to automatically withdraw an amount of up to Rs 50,000 from their account. ASAC Through PF 5 lakhs from Rs. However, some processes have to be followed for this.
PF from PF for illness
Earlier, a certain amount could be withdrawn from PF for treatment in the event of the disease. This system was launched in April 2020. The EPFO has increased the auto settlement limit to Rs 5 lakh for advance claims. In May 2024, Rs 100,000 increased to Rs. 50,000 to Rs. An amount of Rs 1 lakh was made. The EPFO then introduced a system of automatic disposal of advance claims in 3 and categories, allowing the withdrawal of the amount required for education, marriage and housing. Earlier, PF members could withdraw the PF amount only when the disease and hospitalized.
Claim pass in just three days
The claim amount in auto mode will be approved in just 3 days and 95 percent claims will be passed automatically. By 6 March 2025, EPFO received 2.16 crore auto claims for disposal. In 2023-24 this number will be 89.52 lakhs. The claim rejection ratio, which was earlier 50 percent, has now been reduced to 30 percent. Now auto claims are automatically dealt with without human intervention. The formal requirements for verification of authenticity for PF withdrawal have now been reduced from 27 to 18, which has been decided to reduce it to 6. Several systems have been developed to verify the authenticity of members’ claims. The system of disposal of claims has been simplified. In which the database of members has been centralized. If there is any fault in any claim, it is not sent back and it is considered to be processed again. Now UPI system is being started for disposal of claims. By May or June this year, PF members will be able to withdraw money through UPI and CHSS.
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