EPFO to Automate Provident Fund Withdrawal and Money Transfer Process for Enhanced Claim Settlement Efficiency

EPFO to Automate Final Provident Fund Withdrawal Claims

The Employees' Provident Fund Organisation (EPFO) is set to automate the process for settling final provident fund withdrawal claims, a move that will expedite the transfer of funds to the applicant's bank accounts.

With over seven crore members, the EPFO has taken significant strides to simplify and streamline its processes. Currently, partial or advance withdrawal claims of up to Rs 5 lakh are settled through auto mode, with a deadline of three days from filing the claim. The new initiative aims to extend auto-settlement to final withdrawals, making the process more efficient and reducing the burden on applicants.

Speaking at ASSOCHAM's National Seminar on New Labour Codes, Central Provident Fund Commissioner, EPFO, Ramesh Krishnamurthi, highlighted the organisation's efforts to modernise its systems. "We are going to initiate auto-settlement for final withdrawals, which was previously only available for advances. We are also introducing auto-transfer of provident fund accounts in case a member shifts employers."

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The EPFO has been working to simplify and standardise its processes, with the goal of making it easier for members to access their benefits. Under the new system, applicants will no longer need to file a form to initiate the withdrawal process.

Key Statistics: Labour Codes

The government has already notified the four new labour codes, which aim to simplify and standardise labour laws. The next set of notifications, which pertain specifically to the EPFO, will be published shortly. The new legal framework will renotify the three existing schemes - EPF Scheme 1952, Employees' Deposit Linked Insurance Scheme 1976, and Employees Pension Scheme 1995.

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Krishnamurthi emphasised that the new schemes will integrate all the learnings from the past, including recent central board of trustees-approved decisions. These reforms include simplification of withdrawals and other such measures, as well as a major overhaul of the provisions relating to exempt trusts.

Union Labour Secretary Vandana Gurnani highlighted the government's commitment to balancing compliance reduction, ease of doing business, and ensuring that workers are not shortchanged. "Labour is in the concurrent list of the Constitution, and states will frame their own rules," she said. "The onus is now on the industry to ensure that reform is not just viewed as a compliance checklist, but a commitment to dignity, a commitment to a happy, healthy and productive workforce."