To expand the 'Ease of Living' of its 7.5 crore members, Employees Provident Fund Organisation (EPFO) has decided to enhance the auto settlement of advanced claim (ASAC) limit by five times from current Rs 1 lakh, sources told ANI.
Sumita Dawra, Secretary, Ministry of Labour and Employment, had approved the proposal to enhance the limit from Rs 1 lakh to Rs 5 lakh in the 113th meeting of Executive Committee (EC) of Central Board of Trustees (CBT), held last week, according to sources.
The meeting was held in Srinagar, Jammu and Kashmir on March 28,which was attended by Ramesh Krishnamurthi, Central Provident Fund Commissioner, EPFO. Now, the recommendation will go for the approval of CBT. After the approval of CBT, EPFO members can withdraw PF up to Rs 5 lakh through ASAC.
The auto mode of claim settlement was introduced in April 2020 for advance for illness.In May 2024, the EPFO increased the auto settlement of the advanced claim limit from Rs 50,000 to Rs 1 lakh.
EPFO has also introduced auto mode settlement of advance claims for 3 more categories: education, marriage, and housing.Earlier, members were able to withdraw their PF for only illness/hospitalisation purposes.
Also, members of the retirement fund body EPFO may soon be able to withdraw their provident fund (PF) money directly from ATMs after the settlement.Currently, subscribers of the Employees’ Provident Fund Organisation (EPFO) have to wait for 7-10 days for the settlement of their claims online. After the settlement, the money is transferred to the beneficiaries’ bank accounts.
Currently, subscribers of the Employees’ Provident Fund Organisation (EPFO) have to wait for 7-10 days for the settlement of their claims online. After the settlement, the money is transferred to the beneficiaries’ bank accounts.
Under the plan, EPFO subscribers will receive dedicated cards that can be used at ATMs to withdraw savings, a top official said, adding that the EPFO is mulling providing services at par with the banking system to its more than 7 crore subscribers. Under the new system, claimants, beneficiaries or insured individuals will be able to access their claim amounts through ATMs.
A maximum of Rs 7 lakh is provided under the Employees’ Deposit Linked Insurance (EDLI) scheme run by the EPFO to the heirs of deceased subscribers. In the new system, the heir of the deceased EPFO subscriber may also be able to use ATMs to withdraw the money after claim settlement.
The new systems is expected to be rolled out after completion of a hardware upgrade by the EPFO. The body is also likely to issue dedicated cards for use by EPFO subscribers to withdraw claim amounts through ATMs.
*With Agency Inputs
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
