The Employees Provident Fund Organization (EPFO) is bringing a big relief for its members. It is expected that in the next meeting of the Central Board of Trustees (CBT) to be held in May, approval can be given to increase the auto-settlement limit (ASAC) of advance claims from Rs 1 lakh to Rs 5 lakh. With this, about 7.4 crore active members of EPFO ​​will be able to withdraw a large amount directly from their PF account, that too without any manual verification.

At present, this limit is Rs 1 lakh, which was increased from 50 thousand in May 2024. But now there is a preparation to increase it five times to 5 lakhs. According to the news of Moneycontrol, the number of auto claim settlements was around 90 lakh in the financial year 2023-24, which has increased to 2 crores in 2024-25. This shows that the facility of auto-settlement has been very beneficial for the members.

Facility of withdrawal from ATM and UPI will also be available soon.

Another important decision can be taken in the next meeting of CBT. From June, EPFO ​​claims can also be withdrawn through digital platforms like ATM and UPI. For this, the National Payments Corporation of India (NPCI) has prepared the technical infrastructure. If this decision is passed, then withdrawing money from PF will become as easy as withdrawing cash from ATM.

Money will be available without making rounds.

With this step of EPFO, money will be available quickly and easily for needs like medical emergencies, home repair or higher education. Earlier, one had to go to the EPFO ​​office for withdrawal of more than 1 lakh and the process of physical verification was long. But now this obstacle will be removed.

Administrative problems will be reduced.

According to Akhil Chandana, partner, Grant Thornton India, "Increasing the ASAC limit is a welcome step. With this, PF account holders will get funds faster in emergency and the work pressure on EPFO ​​​​officials will also be reduced."

What is Auto Claim Settlement
EPFO i.e. Employee Provident Fund Organization has started a system of Auto Claim Settlement for the convenience of its members, through which you can withdraw money from your PF account under certain circumstances without visiting any office. This is a digital process in which you withdraw money for certain reasons like medical emergencies, home repairs, marriage or studies.

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