Thinking of withdrawing EPF for misuse? EPFO warns it can lead to recovery under EPF scheme
Sep 23, 2025
Synopsis
The EPFO warns against misusing withdrawn EPF amounts, stating it can lead to recovery with penal interest under the EPF Scheme, 1952. EPF advances are restricted to specific purposes like marriage, education, illness, and housing. Members can directly file claims online for PF settlement, pension withdrawal, and partial withdrawal if they meet UAN, Aadhaar, bank account, and PAN requirements.
Are you thinking of buying a luxury watch or sponsoring your trip to an exotic place from your EPF fund? Beware! EPFO has a warning for such EPF subscribers. Employees’ Provident Fund Organisation (EPFO) in a tweet has warned that the wrong use of the withdrawn EPF amount can lead to a recovery under the EPF Scheme, 1952. EPFO in a post on X (formerly Twitter), wrote: “Withdrawing PF for wrong reasons can lead to Recovery under EPF Scheme, 1952.
As per the EPF Scheme, 1952, if a member withdraws EPF, claiming that he is withdrawing it for purchasing or constructing a dwelling house, flat, or acquiring a site, but later using the money for any other purpose, EPFO has the right to recover the amount along with the penal interest.
EPFO’s post on X further reads. “EPF advance can only be applied for purposes like marriage, education, illness, housing as prescribed under EPF scheme 1952.
According to the EPF Scheme, 1952, 68B(11) rule, “Where any withdrawal granted has been misused by the member, no further withdrawal shall be granted to him within a period of three years from the date of the grant of the said withdrawal or till the full recovery of the amount of the said withdrawal, with penal interest thereon, whichever is later.”
What are the claim forms that can be filled from the UAN-member Interface directly by the EPF subscriber?
A member can apply for
a. PF Final settlement (Form 19),
b. Pension withdrawal benefit (Form10-C) and
c. PF part withdrawal (Form 31) from the Member Interface directly
What are the requirements from EPF members to file online claims?
An EPF member should fulfil the following conditions:
a. The member should have activated Universal Account Number (UAN) and the mobile number used for activating UAN should be in working condition.
b. The member’s Aadhaar details should be seeded in the EPFO database and he should avail OTP-based facility for verifying eKYC from UIDAI while submitting the claim.
c. The member’s bank account along with the IFSC code should be seeded in the EPFO database.
d. Permanent Account Number (PAN) should be seeded in the EPFO database for PF Final Settlement Claims in case his/her service is less than 5 years.
EPFO in June 2025 increased the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh.
What are the different types of advances and service eligibility against each?
Members can avail any advance provided they meet the eligibility and maximum amount admissible. Members do not have to provide any documents to avail these advances.
| S.No. | Type of Advance | Service Eligibility |
| 1 | Housing Loan / Purchase of Site / House / Flat or for construction / addition (Para 68B (b)/(c) ) | 60 |
| 2 | Lockout or closure of factory (Para 68H) | 0 |
| 3 | Illness of member / family (Para 68J) | 0 |
| 4 | Marriage of self/son/daughter /brother/sister (Para 68K) | 84 |
| 5 | Post matriculation education of children (Para 68K) | 84 |
| 6 | Natural Calamity (Para 68L) | 0 |
| 7 | Cut in electricity in establishment (Para 68M) | 0 |
| 8 | Purchasing equipment by physically | 0 |
| handicapped (Para 68N) | ||
| 9 | One year before retirement (Para 68NN) | Age above 54 years |
| 10 | Investment in Varistha Pension Bima Yojana (Para 68NNN) | Age above 55 years |
[The Economic Times]
