EPFO Implements New Technology to Accelerate Claims Processing
NEW DELHI: The Employees’ Provident Fund Organisation (EPFO) has significantly improved its claims processing efficiency through new technology. The latest version of Centralised IT Enabled Services (CITES), launched on July 3, has enabled auto-processing of 83% of claims, up from 70%. Claims related to partial withdrawals for education or health can now be processed on the same day if submitted in the morning.
On Tuesday, EPFO processed a record 11 lakh claims worth Rs 3,000 crore, clearing a substantial backlog following a system blackout from June 24 until the new architecture went live. Officials anticipate that the remaining 6-7 lakh cases will be resolved by the end of the week.
Enhanced Processing Capabilities
The new system allows for service requests to be handled at a national level, rather than being confined to regional offices. Simplified rules and a centralized database provide members with clear information on their withdrawal amounts. A senior official stated, “Member services had improved, now subscriber services are also going to be smooth. EPFO badal raha hai (EPFO is changing).”
Additionally, the CITES 2.01 project has facilitated the crediting of 8.25% annual interest for the financial year 2025-26 to nearly 34 crore members, expediting the interest credit process. Automation is expected to free up EPFO staff to address other issues, including pension cases from the pre-UAN era.
Streamlined Claim Disbursement
The modernized architecture allows for faster claim disbursement, raising the auto-settlement limit for advance claims to Rs 5 lakh. Interest will be paid up to the day of final payment authorization for final settlements. The system also enables automatic provident fund transfers for Aadhaar-enabled UANs when members change jobs, eliminating the need for separate applications.
This new approach will assist in disbursing funds from nearly 7 lakh small-balance inoperative accounts, which contain up to Rs 1,000, without requiring claim applications or paperwork from account holders. Currently, there are 32 lakh inoperative accounts holding Rs 10,900 crore.
Member grievances related to claim rejections are expected to decrease due to automated pre-validation before processing. Online guidance will improve first-time acceptance rates, allowing field offices to focus on legacy issues, particularly for members who joined EPFO before the UAN system was implemented.
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