India News | Advance Withdrawal of Up to Rs 5 Lakh from PF Accounts Allowed Through Auto Settlement Mode

New Delhi, Jun 24 (PTI) Union Labour Minister Mansukh Mandaviya on Tuesday announced raising the limit from Rs 1 lakh to Rs 5 lakh for auto-settlement of claims for advance withdrawal from employees' provident fund accounts.

The move will enable members of retirement fund body EPFO to get their advance withdrawal claims of up to Rs 5 lakh settled within three days.

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At present, the limit through auto-settlement mode having three-day deadline is Rs 1 lakh.

"The EPFO has increased auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh to facilitate faster fund access for EPFO members, especially in times of urgent needs," Mandaviya told reporters here.

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This major service enhancement is expected to benefit lakhs of members, he added.

The Employees' Provident Fund Organisation (EPFO), which has more than 7 crore members, had first introduced online auto-settlement of advance claims during the COVID-19 pandemic to provide quick assistance to those facing financial crunch.

Since then, the facility has been extended to cover advance claims for illness, education, marriage, and housing purposes.

These claims are processed automatically by the system without any human involvement, ensuring quick turnaround and transparency.

In FY25, the EPFO processed a record 2.34 crore advance claims through auto-settlement, 161 per cent higher compared to 89.52 lakh claims settled in FY24, the minister said.

He noted that 59 per cent of all advance claims in 2024–25 were settled through auto mode as compared to 31 per cent in 2023-24.

In just the first 2.5 months of FY26, EPFO has already auto-settled 76.52 lakh claims, constituting 70 per cent of all advance claims settled so far, he stated.

This growth highlights EPFO's strong focus on automation and delivering faster, more efficient services to its members, he added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)