EPFO to Raise Auto Settlement Limit for PF Withdrawals to ₹5 Lakh – Faster Claims and New UPI, ATM Benefits Ahead

NEW DELHI April 13, 2025: In a major relief for crores of salaried employees across India, the Employees’ Provident Fund Organisation (EPFO) is all set to increase the auto settlement limit for PF withdrawals from the current ₹1 lakh to ₹5 lakh. This decision, which is awaiting final approval from the Central Board of Trustees, promises faster processing, broader withdrawal purposes, and digital ease via UPI and ATMs.

EPFO Auto Settlement Limit to Quadruple

The proposed revision marks a significant jump of ₹4 lakh, drastically reducing manual intervention in claim settlements. Under the new system, claims of up to ₹5 lakh will be auto-processed and settled within 3 to 4 working days, a sharp improvement from the earlier 10-day window.

The scope of auto-settlement will also expand beyond medical emergencies. Now, employees will be able to file claims for marriage, education, and home purchase, further reducing reliance on paperwork and physical verification.

Major Tech Upgrades: UPI and ATM Withdrawals on the Horizon

In alignment with India’s digital transformation, EPFO is working on integrating UPI and ATM-based withdrawal systems for provident fund accounts. According to Labor and Employment Secretary Sumita Dawra, the Ministry has already approved recommendations from NPCI, and the facility is likely to roll out by June 2025.

With this upgrade, PF account holders can instantly transfer funds to their bank accounts, providing emergency access and digital convenience to more than 7.5 crore EPFO subscribers nationwide.

Simplified Process, Faster Disbursal

EPFO is rapidly evolving to make PF withdrawals hassle-free. As part of the reform:

• 95% of claims will now be processed through the auto-claim system.

• Paperwork has been cut significantly, bringing down the steps from 27 to just 18, and soon, it could go down to only six.

• The service is expected to go live shortly after receiving final trustee approval.

This development is a game-changer for employees relying on their provident fund for life’s important milestones or emergencies.