Employees Provident Fund (EPF) To make the lives of members easier, the Employees’ Provident Fund Organization (EPFO) has simplified the process of withdrawing money for medical treatment, education, marriage and buying a house. EPFO has simplified the rules of auto-settlement for this. Auto-settlement facility for education and marriage under Rule 68K and for home under Rule 68B was introduced recently. The amount to be withdrawn for treatment expenses has been increased. Now all claims up to Rs 1 lakh under these items will be settled through auto-settlement without any human intervention.
How will auto-processing speed up claim settlement?
EPFO usually takes some time to process the claim as it checks the eligibility of the EPF member, documents submitted for the claim, KYC status of the EPF account, valid bank account etc. Auto-processing will drive the entire process starting from settlement and eliminate human intervention. Any claim with KYC, eligibility and bank verification will be processed for payment automatically by the IT tool. As a result, the claim settlement period will be reduced from 10 days to 3-4 days.
Crores of people will benefit
Experts say the introduction of auto-settlement facility up to Rs 1 lakh for marriage, higher education and house purchase will help EPF members get faster claim settlement. The limit on automatic settlement of claims as per para 68J of the EPF scheme will now enable EPF members to withdraw a higher amount of up to Rs 1 lakh for their own or dependent’s medical expenses.
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