NEW DELHI, May 13: The Employees’ Provident Fund Organisation (EPFO) is set to automate the settlement process for final provident fund withdrawal claims, aiming to expedite the transfer of funds directly to members’ bank accounts. This move is part of a broader effort to streamline services for its over seven crore members.
Information was available with The Chenab Times that currently, the EPFO employs an auto-mode for settling advance and partial withdrawal claims up to Rs 5 lakh, with a processing deadline of three days from the claim submission. Central Provident Fund Commissioner Ramesh Krishnamurthi announced that the organization is expanding this automated settlement to include final withdrawals, moving beyond its current application to advances.
Furthermore, Krishnamurthi indicated that the EPFO is implementing automated migration of provident fund accounts for members who change employers. This initiative will eliminate the need for manual form submission, as accounts will be automatically transferred to the latest member identification. This development aims to simplify the process of managing retirement funds across different employment tenures.
The announcement was made during ASSOCHAM’s National Seminar on New Labour Codes, where the simplification and standardization of labour laws were discussed. The Union Labour Secretary, Vandana Gurnani, also addressed the seminar, highlighting the government’s focus on balancing business ease with worker welfare under the new legal framework.
The four new labour codes, notified by the government on May 8, are expected to bring significant changes to the regulatory landscape for businesses and employees. Krishnamurthi stated that further notifications specifically pertaining to the EPFO will be published shortly. These notifications will detail the operational aspects of the new codes concerning provident fund management.
Under the forthcoming legal framework, the three primary schemes administered by the EPFO – the EPF Scheme 1952, the Employees’ Deposit Linked Insurance Scheme 1976, and the Employees’ Pension Scheme 1995 – are slated for renotification. Krishnamurthi clarified that these renotifications will not introduce major structural changes but will integrate lessons learned from past operations and incorporate recent decisions approved by the Central Board of Trustees. These updates include provisions for simplified withdrawals, reforms for exempt trusts, and other administrative enhancements.
Addressing the broader context of labour reforms, Union Labour Secretary Vandana Gurnani emphasized that labour legislation falls under the concurrent list of the Constitution, allowing states to frame their own rules. She articulated the government’s philosophy of reducing compliance burdens, promoting ease of doing business, and ensuring that workers’ rights and benefits are protected. Gurnani urged the industry to view these reforms not merely as a compliance exercise but as a commitment to ensuring the dignity, health, and productivity of the workforce.
The move towards automated fund withdrawals and account transfers is expected to significantly reduce processing times and improve the member experience, reinforcing the EPFO’s commitment to leveraging technology for efficient service delivery in the management of retirement savings for millions of Indian workers.
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The Chenab Times News Desk
