EPFO’s new auto mode: UAN system revamp to expedite claims

New Delhi: After revamping its application software, EPFO (Employees' Provident Fund Organisation) will soon introduce a UAN-based single accounting system for each member, as well as automation of process flow with minimal human intervention for faster claim settlement, according to a Ministry of Labour and Employment release issued on Friday.

The new software is being created in collaboration with the Centre for Development of Advanced Computing (CDAC).

The orgranisation has recently implemented a number of adjustments to make life easier for pensioners and employees. As part of the changes, the EPFO automated the claim settlement process and reduced claim rejection.

EPFO has initiated auto settlement of advances up to Rs 1 lakh for illness, education, marriage, and housing in order to expedite claim processing. According to the Ministry statement, around 25 lakhs of advance claims have been settled automatically.

On June 13, 2024, Sumita Dawra, Secretary, Ministry of Labour and Employment, Government of India, convened an internal review meeting to discuss these measures.

Neelam Shami Rao, CPFC, as well as other top officers from the Ministry of Labour and Employment and EPFO, attended the meeting.

The statement added, while elaborating on the recent reforms undertaken by the EPFO, that more than 50 per cent of the illness claims have been settled till now in auto mode. This has increased claim settlement speed and a large number of them are now being settled within 03 days.

The chequebook/passbook of bank account uploads for the KYC Aadhaar-linked accounts of members have been dispensed with, thus eliminating the scrutiny requirement for almost 13 lakh claims in the last month.
EPFO has also reduced and rationalised the remarks for easy comprehension by the members for the return of incomplete cases and rejection of ineligible cases, the statement read.

The number of auto transfers generated has also increased threefold with the numbers increasing from 02 Lakh on April 24 to 06 Lakh in May 2024, as per the Ministry release.

The review meeting highlighted the need of the expansion of social security and new initiatives for ease of living and ease of business. The operational reforms in Litigation Management and Audit were also discussed during the meeting. ANI