New Delhi: The EPFO has consistently introduced new benefits for PF subscribers, which offer significant advantages to employees on a large scale. The EPFO has won praise by introducing a new framework under which eligible claims will be settled within just three days.
This move is being viewed as a major and surprising shift in the EPFO’s claim settlement process in recent years. Under the new rule, withdrawing PF funds will take less time, and the entire process will become easier and more transparent for subscribers. To avail the benefits of this new rule, you need to be aware of certain essential conditions; understanding these conditions will clear up any confusion you might have.
Check out the EPFO’s new rule.
Previously, employees often had to wait days or even weeks to withdraw their PF funds, as manual verification and paperwork consumed a significant amount of time. However, under the new rules, error-free claims will be cleared within three days. In short, your PF amount will be transferred to your account within this three-day window. If a delay occurs, the concerned officials will be held responsible.
Penalties for officials
While PF withdrawals used to involve weeks of waiting, that will no longer be the case. A strict stance has been adopted to ensure accountability within the Employees’ Provident Fund system. If any official keeps a PF claim pending for more than 20 days without a valid reason, a penal interest of 12% may be imposed on them.
Withdrawal limit raised to ₹5 lakh
Advancing its digital reforms, the Employees’ Provident Fund Organisation(EPFO) has also increased the limit for ‘auto-settlement’, a process where claims are approved without human intervention. Previously, the auto-settlement limit was ₹1 lakh, but the government has now raised this limit to ₹5 lakh. Overall, the auto-settlement limit has been raised by ₹4 lakh. Thanks to this government decision, a significantly higher number of advance claims are now being approved without hassle or delay compared to the past. The likelihood of claim rejection also appears to be minimal under this system.
UPI and ATM withdrawals to be introduced
It is worth noting that major digital transformations are underway as part of these new reforms. Facilities allowing PF employees to withdraw funds via UPI and ATMs will soon be launched. An ATM card is set to be issued for this purpose. Preparations are also being made to enable EPFO account holders to withdraw PF funds directly through UPI and by linking their accounts to ATMs.
