Advance Withdrawal Limit Raised to ₹5 Lakh with Faster Processing

"EPFO Boosts Financial Support: Advance Withdrawal Limit Raised to ₹5 Lakh with Faster Processing"

The Employees' Provident Fund Organisation (EPFO) has significantly enhanced its services by increasing the auto-settlement limit for advance withdrawals from ₹1 lakh to ₹5 lakh. This development, announced by Union Labour Minister Mansukh Mandaviya, aims to provide EPFO members with quicker access to their provident fund savings during emergencies.

Key Highlights

• Increased Auto-Settlement Limit: EPFO members can now avail advance withdrawals up to ₹5 lakh, a substantial rise from the previous ₹1 lakh limit.

• Faster Processing Time: Claims under this new limit will be settled within three days, ensuring prompt financial assistance.

• Expanded Coverage: The auto-settlement facility now encompasses withdrawals for medical emergencies, education, marriage, and housing purposes.

• Enhanced Efficiency: In FY25, EPFO processed a record 2.34 crore advance claims through auto-settlement, marking a 161% increase compared to the previous fiscal year. 

Implications for EPFO Members

With over 7 crore members, this move by EPFO is set to benefit a vast segment of the workforce, especially those in urgent need of funds. The automated, paperless process not only expedites fund disbursement but also reduces the administrative burden on EPFO offices.

This enhancement is part of EPFO's broader initiative to digitize and streamline its services, ensuring that members have seamless access to their retirement savings when needed most.