The Employees’ Provident Fund Organisation (EPFO) is planning to introduce a ‘self-approval’ system for EPF withdrawals, according to a report by Financial Express. The retirement fund body has long struggled with IT infrastructure challenges and an increasing volume of complaints. Lately, it has taken measures to revamp its system, rules, and operational procedures. The proposed self-approval system is another measure that aims to automate EPF withdrawals, enhance member convenience, and reduce claim processing times while minimising the operational burden on staff and systems.

The self-approval system may be launched early next year but there is no formal announcement yet. Currently, EPFO offers auto-settlement for withdrawal claims related to illness and medical treatment. In April 2014, it increased withdrawal limits from Rs 50,000 to Rs 1 lakh, and in May 2024, it extended auto-settlement to claims for education, marriage, and housing purposes.

This feature has reportedly brought down claim settlement times for such advance withdrawals from 10 days to just 3–4 days.

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To further make the claim settlement process faster and streamline the process, EPFO is also exploring provident fund withdrawals through ATMs. It is mulling over issuing a unique card to subscribers for only PF withdrawals from ATMs. Upgrading IT infrastructure, simplifying processes, fast-tracking claim settlements, and reducing complaints remain top priorities for EPFO.

Previously, EPF advance withdrawals involved extensive formalities, including filling out forms, submitting supporting documents, undergoing verification by EPFO officials, and then waiting for funds to be disbursed. This cumbersome process has been a hassle for members who needed funds for emergency purposes like medical treatment.

Reportedly, under the new system, there will be no change in withdrawal limits. Instead, the initiative focuses solely on improving the process. A digital wallet linked to EPFO is also under consideration to store withdrawal amounts for specific purposes. However, nothing is confirmed as of now.

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For claim settlement, EPFO may bring a centralised system for the auto-processing of claims, monthly pension distribution, and UAN-based payment calculation.

According to a prior notification from the Labour Ministry, EPFO settled 4.45 crore claims in the financial year 2023-24, compared to 4.13 crore claims in the previous year, indicating a 7.8 per cent increase.