EPFO Raises Auto-Settlement Of Claims To 83% Under CITES 2.01

New Delhi, Jul 16 (KNN) The Employees' Provident Fund Organisation (EPFO) has significantly accelerated claim settlements following the rollout of the latest version of its Centralised IT Enabled Services (CITES 2.01), with 83 percent of claims now being processed automatically, up from 70 percent earlier.

Auto-Settlement Of Claims Sees Major Jump

The upgraded system, which went live on July 3, along with simplified rules, has enabled faster processing of claims, with some advance withdrawal requests being settled on the same day if submitted in the morning.

According to officials, EPFO processed a record 11 lakh claims worth Rs 3,000 crore in a single day, helping clear a substantial backlog created during the transition to the new centralised architecture. The remaining 6-7 lakh pending claims are expected to be cleared by the end of the week, reported Times Of India.

Centralised Platform Improves Service Delivery

The new platform allows service requests to be processed at the national level instead of being restricted to regional offices. It also enables subscribers to view the exact amount available for withdrawal through a centralised database.

The upgraded system has also facilitated the credit of 8.25 percent annual interest for FY 2025-26 to nearly 34 crore EPFO members, speeding up the interest distribution process.

Key Reforms Simplify PF Processes

Among the key reforms, the auto-settlement limit for advance claims has been increased to Rs 5 lakh, while final settlements will now include interest calculated up to the date of payment authorisation.

The modernised platform also enables automatic provident fund transfers for Aadhaar-linked Universal Account Numbers (UANs) when members change jobs, eliminating the need for separate transfer applications.

Focus Shifts To Legacy And Inoperative Accounts

In addition, EPFO plans to automatically settle nearly 7 lakh inoperative accounts with balances of up to Rs 1,000 without requiring claim applications. Overall, the organisation has around 32 lakh inoperative accounts holding approximately Rs 10,900 crore.

Officials said automated pre-validation of claims is expected to reduce rejections and improve first-time acceptance rates, allowing field offices to focus on resolving legacy cases, including pension claims and accounts created before the introduction of the UAN system.

(KNN Bureau)