Good news, 6 crore EPFO subscribers! Claims in select categories to be processed in just 3 days instead of 10

EPFO latest news, EPF retirement scheme: Retirement fund body Employees' Provident Fund Organisation (EPFO) has extended a quicker auto-mode system to cover advance claims for select purposes, according to an official statement. The development is set to help multitudes of EPFO members directly, enabling them to avail their funds within the shortest possible duration.

The move is aimed at enhancing the ease of living and ensuring better access to services for EPFO members. 

The provident fund (PF) body has also more than doubled the limit on such withdrawals under these categories.  

Here's all you need to know about this big story: 

Which EPFO advance requests (claims) will qualify?

Claims for three purposes will qualify under this change: 

• Education (para 68K of the EPF scheme law) 
• Marriage (para 68K)
• Housing (para 68B)

Is there anything else that's new?

Yes, the EPFO has also doubled the existing limit applicable to such claims to Rs 1 lakh.

This move is expected to benefit lakhs of EPFO members, the PF body said. 

Can you get an EPFO advance claim settled in 2 days?

Citing an example, EPFO said in a statement that a member, who had applied for advance for illness on May 9, got his claim settled on May 11.

"There are many such stories like that," the retirement fund body added.

What is provident fund body EPFO's Auto Claim Solution facility?

Auto Claim Solution is a special, IT-powered claim settlement facility provided by EPFO that ensures that claims are processed automatically without human intervention.

When were auto EPFO claim settlements introduced? 

The automatic mode was introduced in April 2020. It was applicable to claims to cover illness-related expenses borne by EPFO members.

Meanwhile, EPFO settled a total of 4.45 crore claims in FY24, including 2.84 crore advance claims.

Out of the total advance claims, around 89.5 lakh were settled using the auto mode. 

How does the auto claim settlement system work?

The entire process in auto-settlement is technology-driven, eliminating the need for human intervention, thereby reducing the turnaround time for advance claim settlements for EPFO members.

The system runs a validation check related to various criteria such as know-your-customer (KYC), eligibility and bank verification, and then automatically decides on the request.

The claims not validated by the system are not outrightly rejected, but transferred to a second level of scrutiny and approvals.