New Delhi, June 24, 2025 — In a major relief to Employees’ Provident Fund (EPF) subscribers, the Employees’ Provident Fund Organisation (EPFO) has permitted advance withdrawals of up to ₹5 lakh from PF accounts through an automatic settlement system.
The auto-mode settlement aims to speed up processing for account holders in urgent need of funds, especially in cases like illness, education, or house construction, where advance withdrawals are permitted under existing rules.
As per the latest update, the auto-settlement feature will allow advance claims up to ₹5 lakh to be processed digitally without requiring manual intervention. This means eligible claimants can expect faster fund transfers directly to their bank accounts once the system confirms all conditions are met.
Previously, claims over ₹50,000 often involved delays due to manual verification. This new limit significantly expands the scope of faster processing, particularly benefiting salaried workers seeking financial relief in emergencies.
EPFO clarified that the facility will be rolled out in phases to ensure system robustness and security, with monitoring in place to prevent misuse. The organisation is also urging members to ensure their Aadhaar and bank details are fully updated on the portal for smooth transactions.
This move is part of a broader push by the Ministry of Labour and Employment to enhance digital efficiency and reduce turnaround times in the management of provident fund claims.
