Now You Can Withdraw Up to 5 Lakh Rupees from EPF Account (What’s New)

The Employees’ Provident Fund Organization (EPFO) has announced a significant change for its 7.5 crore members.

The withdrawal limit under auto settlement has now been increased to Rs 5 lakh, up from the previous limit of Rs 1 lakh.

- Advertisement -

This change will make it easier for EPFO members to withdraw funds for urgent needs like medical emergencies, education, marriage, or buying a house.

New Withdrawal Limit of Rs 5 Lakh

On March 28, during the 113th meeting of the Central Board of Trustees (CBT) in Srinagar, the Secretary of the Ministry of Labor and Employment, Sumita Davra, approved this new limit.

Once the final approval is granted by the CBT, EPFO members will be able to withdraw up to Rs 5 lakh for expenses related to education, marriage, home purchase, or medical treatment.

- Advertisement -

What is the Automated Claim Process?

EPFO introduced an automated claim system in April 2020 for medical expenses, which was later increased from Rs 50,000 to Rs 1 lakh in May 2024.

Now, this system also applies to withdrawals for education, marriage, and buying a house.

- Advertisement -

The key feature of this automated system is that it settles 95% of claims in just 3 days.

By March 6, 2025, EPFO had processed 2.16 crore auto-claims, a significant increase from the 89.52 lakh claims in 2023-24.

This improvement has also reduced the claim rejection rate from 50% to 30%.

Simplified Process for Withdrawing PF

EPFO has streamlined the claim process by using an automated IT system, eliminating human intervention.

Previously, there were 27 types of verification, but now it’s been reduced to 18, with plans to simplify further.

Claims with valid KYC, eligibility, and bank details from the centralized IT member database can now be settled within 3-4 days.

Any cases that cannot be verified automatically will be investigated separately.

Withdraw PF via UPI and ATM Soon

EPFO is also working on making PF withdrawals easier by integrating UPI and ATM facilities.

The Ministry of Labor and Employment has approved the proposal from NPCI to link PF withdrawals with UPI and ATM by May-June 2025.

This will make withdrawing funds even more convenient for EPFO members.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

More Articles