PF Withdraw New Rule: There is great news for crores of employed people. The government is soon going to increase the limit of auto settlement of PF withdrawal from Rs 1 lakh to Rs 5 lakh.
It is reported that the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) may approve next month to increase the auto-settlement limit for advance claims from the current Rs 1 lakh to Rs 5 lakh. The CBT will approve it in its next meeting (possibly in May), giving significant relief to EPFO subscribers. “EPFO currently has about 7.4 crore active subscribers.
What is the detail
According to a report by Moneycontrol, the CBT may give a big relief to EPFO subscribers in its next meeting, which is likely to be held in May. The PF withdrawal limit can be increased from Rs 1 lakh to Rs 5 lakh. This will make withdrawal of the amount possible without the need for manual verification. Let us tell you that in May 2024, the auto claim settlement limit was increased from Rs 50,000 to Rs 1 lakh. According to the report, auto-settlement claims more than doubled from about 9 million in FY24 to about 20 million in FY25.
Funds can be withdrawn from ATM and UPI
Another official said that the CBT may also approve withdrawal of EPFO claims through ATM and UPI from June in its next meeting. He said that the National Payments Corporation of India (NPCI) has prepared a framework to allow auto-claim settlement through the UPI platform. With the increase in the auto-settlement limit, members will be able to automatically withdraw an amount of up to Rs 5 lakh instantly. Currently, members had to wait for manual verification to withdraw an advance amount of more than Rs 1 lakh.
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