In June 2025, EPFO's revised his auto-settlement limit. This limit is now Rs. ____ lakh.
Show answer & explanation
Correct answer: C
Explanation
The Employees' Provident Fund Organisation (EPFO) has revised its auto-settlement limit to ₹5 lakh in June 2025.
This limit was previously only ₹1 lakh, which was increased to ₹1 lakh in April 2024, and now, as of the latest update in June 2025, it has been increased to ₹5 lakh. This move has been taken to speed up and simplify the claims settlement process for crores of EPFO members.
Key benefits of the auto-settlement facility:
Faster withdrawals: Under this, claims made for purposes such as illness, education, marriage, or home purchase are automatically processed by the IT system without any manual intervention.
Time savings: Previously, claims settlement took 10 to 15 days, but in auto-mode, it is done within 3-4 days.
Less Document Requirement: If the KYC (Aadhaar, PAN and Bank Account) of the member is fully updated, the system automatically checks the eligibility.