EPFO Doubles Auto-Claim Limit: Discover How You Could Access ₹1 Lakh Instantly!
The Employees’ Provident Fund Organization (EPFO) has announced a significant increase in the auto claim settlement limit from ₹50,000 to ₹1 lakh, providing relief to millions of employees. This decision aims to enhance the “Ease of Living” for account holders and streamline the process for accessing provident fund advances for purposes like education, housing, and marriage under Sections 68K and 68B of the EPF Scheme, 1952.
Highlights of the Announcement:
- Increased Auto Claim Limit:
- Limit raised from ₹50,000 to ₹1 lakh.
- Applicable to advances for house construction, education, and marriage.
- Improved Claim Settlement:
- Over 1.15 crore claims have been settled automatically this financial year.
- The rejection rate has reduced to 14% as of November 2024.
- Retrospective Insurance Benefits:
- The Employees’ Deposit Linked Insurance (EDLI) Scheme will offer benefits ranging from ₹2.5 lakh to ₹7 lakh with retrospective effect from April 28, 2024.
- Interest on Claims Until Settlement:
- Section 60(2)(b) of the EPF Scheme, 1952, was amended to ensure interest is paid up to the date of claim settlement.
- CITES 2.01 for Pensioners:
- Launch of the CITES 2.01 IT modernization project from January 1, 2025.
- Centralized pension payment system to benefit 78 lakh pensioners, allowing them to receive pensions from any bank branch.
Impact on Employees:
- 27.74 crore employees are expected to benefit from these measures.
- Simplified processes and reduced rejection rates will ensure faster access to funds.
- Enhanced insurance coverage will provide greater financial security to dependents in case of unforeseen events.
These updates reflect EPFO’s commitment to improving employee benefits and modernizing processes to better serve its vast membership base.
Source: Zeebiz | Image Credit: AI-Generated
