EPFO fast-tracks PF withdrawals, aims to settle claims within 24–48 hours — check details here

The Employees' Provident Fund Organisation (EPFO) expects most fresh PF withdrawal claims filed by members to be settled on the same day or within a maximum of two days, giving major relief to salaried individuals.

This announcement was made by Ramesh Krishnamurthy, Central Provident Fund Commissioner (CPFC), EPFO, on Friday, while he was addressing the Global Industrial Relations Summit held in New Delhi. He also noted that the retirement fund body has almost cleared its claim settlement backlog.

"We have almost cleared all our backlog of claim settlements. In the new system, we are seeing auto-settle claims as high as 90 per cent. We hope that most of the claims filed by members will be settled either on the same day or within a maximum of two days," Ramesh Krishnamurthy, Central Provident Fund Commissioner (CPFC), EPFO, said on Friday.

The faster turnaround is expected to help subscribers access their EPF savings more quickly. Until now, Online claims filed with the EPFO are usually settled within seven to 10 working days upon completion of KYC.

Claim settlement via UPI to be introduced in a month

Krishnamurthy also announced that EPFO will introduce provident fund claim settlement through the BHIM app, enabling claims to be credited directly to the UPI-linked bank accounts of members.

The framework is expected to be rolled out within about a month.

"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. So this framework will also get implemented in maybe a maximum a month," he was quoted as saying by news agency ANI.

Will the EPF interest rate be increased from 8.25%?

When asked whether the Employees’ Provident Fund (EPF) interest rate could be raised above the current 8.25%, Krishnamurthy said it was too early to comment on any potential increase.

"It is too premature to say. At this moment we have already credited and this is something which is a very significant achievement for EPFO. In a single shot, over 34 crore member accounts were credited as on July 3 and we transferred nearly ₹1.44 lakh crore as interest at the rate of 8.25 per cent. I think that is a huge thing," he said during the event.

Krishnamurthy said EPFO's new employment schemes and ongoing reforms are focused on providing enhanced member services while simplifying compliance for employers. The organisation will now focus on compliance-related reforms to make interactions easier for employers and to strengthen trust in EPFO as a reliable social security institution for both employers and employees.

(With inputs from ANI)