EPFO Fast-Tracks PF Withdrawals, Aims To Settle Claims Within 24–48 Hours

The Employees’ Provident Fund Organisation (EPFO) is moving to settle fresh Provident Fund (PF) withdrawal claims either on the same day or within a maximum of 48 hours, significantly reducing processing times for millions of salaried workers across India. The retirement fund body has also cleared nearly all of its claim settlement backlogs as part of an ongoing overhaul of its administrative infrastructure.

Addressing the Global Industrial Relations Summit in New Delhi, Central Provident Fund Commissioner (CPFC) Ramesh Krishnamurthy stated that automated processing now handles up to 90 percent of incoming claims. Under the existing system, online claim settlements typically require between seven and 10 working days following Know Your Customer (KYC) verification. New EPFO Rule: PF and Pension Claims Must Be Settled in 20 Days, Here’s How To Act on Delays.

UPI-Based Claims via BHIM App to Launch Soon

In addition to faster settlement windows, the EPFO plans to roll out direct claim disbursements through the BHIM app within the next month. Once implemented, members will be able to receive approved withdrawal payouts directly into their UPI-linked bank accounts.

"As our Minister has said, the claim settlement process we will be introducing through the BHIM app, and the claim will be settled through the UPI-linked bank account," Krishnamurthy said, adding that the technical framework is expected to go live within a month. EPFO’s New Aadhaar Portal Lets Members Trace, Transfer and Merge Inoperative PF Accounts.

EPF Interest Rate and Backlog Resolution

Addressing queries regarding a potential increase in the EPF interest rate beyond the current 8.25 percent, Krishnamurthy noted that any discussion on rate adjustments is premature.

He highlighted that the organization recently completed a major payout operation, crediting nearly INR 1.44 lakh crore in interest at the 8.25 percent rate across more than 34 crore member accounts in a single distribution on July 3.

Focus Shifted to Employer Compliance Reforms

With claim backlogs largely eliminated, the EPFO is shifting its operational focus toward employer compliance reforms. The pension body aims to streamline interactions for businesses, simplify regulatory procedures, and reinforce trust in the platform as a primary social security institution for both workforce members and employers.