Mon Mar 31 16:50:00 UTC 2025: ## EPFO to Raise Auto-Settlement Limit for PF Advance Claims to ₹5 Lakh

**New Delhi, April 1, 2024** – The Employees Provident Fund Organisation (EPFO) is poised to significantly increase the limit for its automatic settlement of advance claims (ASAC). Sources indicate the limit will likely jump from ₹1 lakh to ₹5 lakh, pending final approval from the Central Board of Trustees (CBT).

The proposal, approved by Labour and Employment Secretary Sumita Dawra at the CBT’s 113th executive committee meeting last week, aims to further streamline the PF withdrawal process. The increase follows the successful implementation of ASAC, which was initially launched in April 2020 with a ₹50,000 limit.

The move will allow EPFO members to access up to ₹5 lakh for various purposes, including illness, marriage, education, and housing, without manual intervention. The ASAC system, powered by IT tools, has already significantly reduced claim processing time to 3-4 days from a previous 10 days, and rejection rates have plummeted from 50% to 30%.

Further improvements are underway, with validation formalities being reduced to just 6% – down from 27% previously. The government also plans to simplify and centralize member databases to further enhance efficiency.

While the report awaits final CBT approval, its implementation would represent a major boost for EPFO members seeking faster and easier access to their provident funds.

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