April 1, 2025 | New Delhi – In a significant move set to benefit 7.5 crore Employees’ Provident Fund Organization (epfo) members, the Modi government has approved a proposal to raise the auto-settlement limit for PF withdrawals from ₹1 lakh to ₹5 lakh. The proposal was greenlit by Sumita Dawra, Secretary of the Ministry of Labour and Employment, during the 113th meeting of the Central Board of Trustees (CBT) in Srinagar, Jammu and Kashmir.
🔍 Key Highlights of the PF Withdrawal Reform
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New Limit: Auto-settlement of PF advance claims increased from ₹1 lakh to ₹5 lakh.
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Eligible Beneficiaries: Over 7.5 crore active EPFO members stand to benefit from faster, automated withdrawals.
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Approval Status: Cleared at executive level, pending final ratification by the CBT.
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Objective: To ease financial access for employees during emergencies like illness, education, housing, or family events.
🏦 What Is Auto-Settlement?
Auto-settlement allows EPFO claims to be processed automatically, with minimal human intervention. It reduces delays and improves transparency and speed. According to reports:
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Over 2.16 crore auto-claims were settled in FY 2024–25.
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95% of eligible claims are now settled within three days.
💳 Coming Soon: PF Withdrawals via UPI and ATMs
In a first-of-its-kind move, the government also plans to roll out PF withdrawal through UPI and ATMs by May–June 2025. This will make accessing PF funds as simple as using an ATM card or a UPI-enabled app.
Benefits of UPI/ATM Access:
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Instant withdrawals up to ₹1 lakh
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24×7 access to funds, no need to visit an EPFO office
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Will integrate with existing banking apps and ATM networks
🧾 What’s Next?
The final nod from the Central Board of Trustees is awaited, after which:
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EPFO systems will be updated to reflect the ₹5 lakh limit.
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Awareness campaigns will educate members on using the UPI and ATM features for seamless fund access.
🏁 Government’s Vision: Simplifying Employee Benefits
Sumita Dawra emphasized that this reform is part of the government’s mission to improve ease of living for India’s working class. By automating settlements and simplifying withdrawals, the EPFO is being transformed into a real-time, employee-first institution.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.