EPFO Raises Auto‑settlement Limit From ₹1 Lakh to THIS Much for Advance PF Claims

EPFO (Employees' Provident Fund Organization) has made it easier and faster to take money out of your Provident Fund.  A recent tweet from ANI says that EPFO has raised the auto-settlement cap for advance claims from ₹1 lakh to ₹5 lakh. This means that members can get their money faster without having to do anything by hand.

What's different?

Five times better:  The minimum amount for auto-settlement of advance claims (ASAC) has gone up from ₹1 lakh to ₹5 lakh.

Approval by the Central Board: The plan was accepted at the 113th meeting of the Executive Committee of the Central Board of Trustees (CBT), which was held in Srinagar on March 28 and was led by Secretary Sumita Dawra.  It now waits for the final CBT nod.

Why it's important

They want to improve the "ease of living" for their 7.4–7.5 crore active subscribers with this move.  When it started in April 2020, the auto-settlement process was first used for medical situations with a ₹50,000 limit.  Later, in May 2024, it was raised to ₹1 lakh and made bigger to cover scenarios like marriage, schooling, and natural disasters.

Over 2.16 crore car claims were settled as of March 6, 2025, up from 0.895 crore the previous fiscal year. This shows how quickly people are adopting digital technology.

The time to settle car claims has cut down sharply. Now, 95% of claims are settled within 3–4 days, compared to up to 10 days before.

Claim rejections went down from 50% to 30%, and the number of confirmation steps went down from 27 to 18 and will soon be down to 6.

What to do to help

Eligible members only need to make sure that their UAN is tied to their Aadhaar, PAN, and bank account.

Fill out and send in Forms 31, 19, and 10C online through the UAN site to make an advance claim.

Get up to ₹5 lakh automatically processed within days—no need to go to the office.

The ₹5-lakh cap will go into effect in FY 2025–26, which is a big step toward going digital.

A bigger push for digital: UPI and ATMs

EPF will also be able to be withdrawn through UPI and ATMs by June 2025.  Together with NPCI, the Ministry of Labour is trying to connect EPF balances with real-time UPI transfers. These features could be added to GPF and PPF as well.

Impact and how the industry responded

Members with less than 5 lakh rupees:  Should gain the most, especially in times of emergency, higher schooling, or housing.

EPFO operations: Automation cuts down on manual work, boosts speed, and makes service clearer.

Digital finance ecosystem: This move fits in with larger changes in digital payments and paperless government.

Akhil Chandna of Grant Thornton, an expert in the field, praises the reform: "PF account holders will receive quick disbursal in cases of emergency..."  It will also make things easier for EPFO officers in terms of paperwork.