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The Employees' Provident Fund Organisation (EPFO) has announced a significant achievement in its claim settlement process for the financial year 2024-25. The organization successfully settled a record-breaking five crore claims, totaling over ₹2.05 lakh crore. This represents a substantial increase compared to the previous fiscal year (2023-24), where 4.45 crore claims worth ₹1.82 lakh crore were settled. This surge in claim settlements signifies a considerable improvement in the EPFO's efficiency and responsiveness to its members' needs. The substantial increase in the monetary value of settlements also points to a growing reliance on the EPFO's provident fund scheme, potentially reflecting economic growth and increased employment within the sectors covered by the scheme.
Union Labour Minister Mansukh Mandaviya attributed this remarkable success to a series of transformative reforms implemented by the EPFO. These reforms encompassed several key areas, aiming to streamline processes and enhance the overall member experience. One significant aspect was the increase in the ceiling and categories of auto-settled claims. Auto-claim settlements, which require minimal human intervention, doubled in 2024-25, reaching 1.87 crore compared to 89.52 lakh in 2023-24. This automation significantly reduced processing times and minimized potential delays or bottlenecks in claim disbursement. Simplification of member profile changes, streamlined PF transfers, and improved KYC (Know Your Customer) compliance ratios also played a crucial role in achieving these impressive results.
The reforms extended beyond automation. The simplification of the transfer claim application process drastically reduced the need for employer and member attestations. Now, only 8% of transfer claims require such verification, showcasing a significant reduction in bureaucratic hurdles. The initiative empowered members by allowing 48% of claims to be submitted directly without employer intervention, further accelerating the claim settlement process. An additional 44% of transfer requests are now generated automatically, highlighting the seamless integration of technology in the system. These changes demonstrate a clear shift towards a more member-centric approach, empowering individuals to manage their PF accounts with greater ease and independence.
The impact of the reforms extended to member profile corrections as well. Approximately 97.18% of these corrections are now self-approved by members, with only 1% requiring employer approval. The reduction in office intervention to a mere 0.4% illustrates the remarkable efficiency gains achieved through the streamlined processes. This efficiency is further corroborated by the significant drop in rejection cases. Employer rejections have fallen to 1.11%, and regional office rejections have decreased to 0.21%. This signifies a considerable reduction in procedural bottlenecks and an improvement in the overall accuracy and efficiency of claim processing. The consistently low rejection rates across different stages demonstrate the EPFO's commitment to providing a seamless and transparent experience for its members.
The significant increase in claim settlements and the reduction in processing times highlight the effectiveness of the EPFO's reform initiatives. These changes not only improved efficiency but also reduced grievances among members. By streamlining processes, automating tasks, and empowering members with greater control over their accounts, the EPFO has significantly enhanced its service delivery. The success of these reforms serves as a model for other government agencies seeking to improve efficiency and enhance the experience of citizens interacting with public services. The future focus should be on maintaining this momentum, addressing any remaining challenges, and continuing to refine processes to ensure continued improvement in the years to come. The increased reliance on digital platforms and automation should also be considered for long-term sustainability and scalability of the EPFO's service delivery model.