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EPFO Fast-Tracks PF Withdrawals, Aims to Settle Claims Within 24–48 Hours

UPSC / SSC current affairs note · Economy

Social SectorEconomyEthics

Why in news

The Employees' Provident Fund Organisation (EPFO) has announced that most fresh PF withdrawal claims will be settled within 24–48 hours, a major relief for salaried individuals. The announcement was made by Central Provident Fund Commissioner Ramesh Krishnamurthy at the Global Industrial Relations Summit in New Delhi. This move is part of EPFO's efforts to clear its backlog and improve service delivery.

Background

EPFO is a statutory body under the Ministry of Labour and Employment, managing provident fund, pension, and insurance for Indian workers. Previously, online claims were settled within 7–10 working days after KYC completion. The new system aims to reduce this to same-day or two-day settlement, with auto-settlement of claims reaching 90%.

Key facts

in5points

  1. EPFO aims to settle fresh PF withdrawal claims within the same day or a maximum of two days.

  2. The announcement was made by Ramesh Krishnamurthy, Central Provident Fund Commissioner (CPFC), EPFO, on Friday at the Global Industrial Relations Summit in New Delhi.

  3. EPFO has almost cleared its claim settlement backlog.

  4. In the new system, auto-settle claims are as high as 90%.

  5. EPFO will introduce PF claim settlement through the BHIM app, crediting claims directly to UPI-linked bank accounts.

  6. The BHIM app framework is expected to be rolled out within about a month.

  7. EPFO credited interest to over 34 crore member accounts in a single shot, a significant achievement.

  8. The current EPF interest rate is 8.25%, and CPFC said it is too premature to comment on any potential increase.

  9. Previously, online claims were settled within 7–10 working days upon completion of KYC.

Prelims pointers

  • EPFO: Employees' Provident Fund Organisation, statutory body under Ministry of Labour and Employment.
  • CPFC: Central Provident Fund Commissioner, head of EPFO.
  • BHIM app: Bharat Interface for Money, UPI-based payment app.
  • UPI: Unified Payments Interface, instant payment system.
  • EPF interest rate: 8.25% for the current fiscal year.
  • Global Industrial Relations Summit: held in New Delhi.
  • EPFO manages over 34 crore member accounts.
  • Auto-settlement of claims: 90% in new system.

Mains angles

  • GS2: Government policies and interventions for development of social sectors; welfare schemes for vulnerable sections.
  • GS3: Inclusive growth and issues arising from it; e-governance applications and digital initiatives.
  • GS4: Ethics in governance – transparency and accountability in public service delivery.
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