EPFO to Soon Automate Withdrawal of Retirement Funds

Employees Provident Fund Organisation is preparing to automate the settlement process for final provident fund withdrawal claims as part of a broader digital transformation initiative aimed at reducing paperwork, improving processing speed and simplifying member services for its more than 7 crore subscribers, as per the PTI news reports. 

EPFO Expands Auto-Settlement Facility 

Speaking at the ASSOCHAM National Seminar on New Labour Codes, Ramesh Krishnamurthi, Central Provident Fund Commissioner, said the organisation is extending auto-settlement facilities beyond partial withdrawal claims to include final provident fund withdrawals as well. 

At present, EPFO processes partial or advance withdrawal claims of up to ₹5 lakh through auto mode, with settlements targeted within three days from claim filing. 

Krishnamurthi said EPFO is now moving towards “auto-settlement of final withdrawals” to further accelerate fund transfers directly into members’ bank accounts. 

The organisation is also introducing automatic provident fund account transfers for employees changing jobs. Under the proposed system, members may no longer need to submit separate transfer forms when moving between employers. 

According to Krishnamurthi, EPFO will attempt to “auto-migrate” existing provident fund accounts to the latest member account to improve convenience and reduce manual processes. 

Labour Code Changes to Bring Additional Reforms 

Krishnamurthi said the government has already notified all four labour codes on May 8, while additional EPFO-related notifications are expected shortly. 

Under the revised framework, the Employees’ Provident Fund Scheme 1952, Employees’ Deposit Linked Insurance Scheme 1976 and Employees Pension Scheme 1995 will also be renotified. 

He stated that the reforms focus on simplifying procedures, standardising definitions and incorporating lessons learned from previous operational challenges. 

The changes also include simplified withdrawal processes and a significant overhaul relating to exempt trusts. 

Krishnamurthi said the updated schemes integrate several decisions already approved by the Central Board of Trustees along with operational reforms aimed at improving efficiency. 

Government Focused on Ease of Compliance and Worker Welfare 

Vandana Gurnani, Union Labour Secretary, said labour falls under the concurrent list of the Constitution and states will continue framing their own rules under the broader labour code structure. 

According to Gurnani, the government’s approach has focused on balancing compliance reduction, ease of doing business, business expansion and worker protection simultaneously. 

She said labour reforms should not be viewed merely as “a compliance checklist” but as a commitment towards ensuring a dignified, healthy and productive workforce. 

Read More: PF Withdrawals Get Faster: EPFO Clears 71% Claims in Just 3 Days! 

Conclusion 

EPFO is accelerating digitisation of provident fund services through automated withdrawals and account transfers as the organisation moves towards faster, paperless and member-friendly operations under the new labour framework. 

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