RBI Grade BNABARD ESISEBI
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Context:
In a major move to enhance financial access for formal sector workers, the Employees’ Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. The step is aimed at expediting disbursal of funds for urgent needs such as illness, education, marriage, and housing.
Background: Auto-Settlement Mechanism Introduced During COVID-19
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- The auto-settlement system was first introduced during the COVID-19 pandemic to ensure timely financial relief for EPFO members.
- Since then, the facility has been expanded to include:
- Medical emergencies
- Education and marriage expenses
- Housing-related advances
- Claims under this facility are processed automatically by the system, without human involvement—ensuring speed, transparency, and efficiency.
India’s Expanding Social Security Coverage Recognised by ILO
Minister Mandaviya also highlighted India’s growing recognition on the global stage for expanding social protection:
- The International Labour Organisation (ILO) acknowledged India’s achievement in its latest global dashboard.
- 64.3% of India’s population (over 94 crore people) are now covered by at least one social protection scheme.
- In 2015, this coverage was just 19%.
- India now ranks second globally in terms of total number of social protection beneficiaries.
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