The Employees’ Provident Fund Organisation (EPFO) has warned all subscribers not to withdraw from their provident fund corpus for “wrong reasons”, otherwise, you may be asked to return the money, according to a recent social media post by the retirement fund body. As a member, you may think that you will get away with providing a random reason for withdrawing funds from your PF account, but remember that EPFO rules allow recovery of money if found that the withdrawal was incorrect by giving a fake reason.
The EPFO has clear rules for withdrawing PF funds. Generally, you can withdraw your PF balance only after retiring from service or reaching the superannuation age of 58. Partial withdrawals are also permitted under certain circumstances like home buying, marriage, education, or serious illness.
However, members must remember that all withdrawals require proper documentation and justification. If you violate these rules or do not use the PF funds for the reason mentioned, the EPFO has full authority to recover the funds, along with interest and penalties. Therefore, it’s important to fully understand the withdrawal rules when you raise a request for PF advance.
EPFO warns subscribers against wrong withdrawals
The EPFO wrote on its official X (formerly Twitter) account: Withdrawing PF for wrong reasons can led to Recovery under EPF Scheme 1952. Protect your future, use PF only for the right needs. Your PF is your lifelong safety shield!”
This means that if members withdraw PF for reasons that are not covered by the rules, the EPFO can recover the amount and charge penalty interest.
When can you withdraw PF funds?
According to the EPF Scheme 1952, PF advances can only be withdrawn under certain circumstances: Marriage, children’s education, serious illness and
for the purchase or construction of a house.
If a member withdraws PF funds with the intention of purchasing a house, but later uses it for something else — the EPFO has every right to reclaim the amount.
Section 68B(11) Rule
Section 68B(11) of the EPF Scheme 1952 clearly states:
-If a member is found to have misused the withdrawn funds, he or she will not be allowed to withdraw from the PF account for the next three years.
-Also, no new advance will be approved until the amount is fully repaid, along with interest.
This means that withdrawing PF funds for the wrong reason could mean you’re left without a future need.
Online EPF claim rules
The EPFO has also clarified that members can file claims by filling out certain forms directly from the UAN portal:
Form 19 – Final Settlement of PF
Form 10-C – Pension Withdrawal Benefit
Form 31 – Partial Withdrawal
To do this, members must meet the following conditions:
-Must have an active UAN and the same mobile number with which the UAN was activated.
-Aadhaar number must be linked to the EPFO database and eKYC verification must be enabled.
-Bank account and IFSC code must be updated in the EPFO database.
If the service period is less than 5 years, PAN number must be linked for final settlement (Form 19).
New Withdrawal Limit
In June 2025, The EPFO increased the auto-settlement limit from Rs 1 lakh to Rs 5 lakh. This will eliminate the need for members to visit the EPFO office for minor expenses.