EPFO Reform FAQs: All You Need To Know About New Withdrawal Rules, Vishwas Scheme, And 3.0

Last Updated:October 14, 2025, 16:20 IST

EPFO approves simplified EPF withdrawals, launches Vishwas Scheme, partners with IPPB for pensioners, and unveils EPFO 3.0.

Under the revised guidelines, withdrawals for education, marriage purposes have been liberalised

In a major overhaul aimed at simplifying withdrawal process, smoother and faster service and reducing older disputes, the Employees’ Provident Fund Organisation (EPFO) has approved a series of changes to make your EPF experience smoother, faster, and more convenient.

Here’s a simple FAQ guide explaining what was decided in the 238th meeting of the Central Board of Trustees (CBT), chaired by Union Minister Dr. Mansukh Mandaviya.

1. What are the main changes introduced by EPFO?

The new updates focus on member convenience and digital transformation.

Here’s a quick list:

• Simplified EPF partial withdrawals
• ‘Vishwas Scheme’ to settle old penalty disputes easily
• Doorstep Digital Life Certificate service for pensioners
• EPFO 3.0, a new digital system for faster and smarter services
• Selection of new fund managers for better returns

2. How will the new withdrawal rules make things easier for me?

Earlier, EPF partial withdrawals were confusing, with 13 different rules.

Now, all of them are merged into one simple rule — divided into three easy categories:

1. Essential Needs: illness, education, marriage
2. Housing Needs: home loan or purchase
3. Special Circumstances: any other personal need

What’s new:

• You can withdraw up to 100% of your eligible EPF balance.
• Education withdrawals increased up to 10 times.
• Marriage withdrawals increased up to 5 times.
• You only need 12 months of service to qualify.
• No need to give reasons for “Special Circumstances."
• No documents required and claims will be auto-approved online.
  • This means you can access your money faster, without paperwork or waiting for approvals.

3. Why do I have to keep 25% of my EPF balance untouched?

To help you build a strong retirement fund, EPFO now requires members to keep 25% of their PF balance as a minimum.

This ensures:

• You continue earning the 8.25% annual interest.
• Your savings grow with compound interest.
• You still have easy access to 75% for any need.
• So, you get both flexibility now and security later.

4. What is the new ‘Vishwas Scheme’?

The ‘Vishwas Scheme’ is designed to reduce disputes between employers and EPFO over delayed PF payments.

Here’s how it helps everyone:

Old penalty rates (up to 37% a year) are replaced with a simple 1% per month rate.

Delays up to 2 months → 0.25%

Delays up to 4 months → 0.50%

The scheme will run for 6 months (extendable by another 6).

All pending legal cases can be closed easily once dues are cleared.

Why this matters to you:

Fewer disputes mean faster recovery of your PF dues, better fund management, and more trust in the system.

5. How does the EPFO–IPPB partnership help pensioners?

EPFO has partnered with India Post Payments Bank (IPPB) to offer doorstep Digital Life Certificate (DLC) services.

Here’s what it means:

• Post office staff will visit your home to collect your DLC.
• It’s free for pensioners (Rs 50 per certificate paid by EPFO).
• Helps senior citizens, especially in rural areas, avoid travel.
• Ensures uninterrupted pension payments and quick family pension processing.
• This service puts elderly convenience first and ensures timely pensions for all.

6. What is EPFO 3.0?

EPFO 3.0 is a major step toward full digital transformation — designed to make the entire PF experience faster, simpler, and accessible to all.

It includes:

• A core banking system like banks use Cloud-based, API-driven modules for claims, payroll, and compliance
• Real-time, multilingual services for members

Benefits for you:

• Instant claim settlement and real-time updates
• Seamless mobile and web access
• Paperless, transparent, and secure services
• EPFO 3.0 is all about putting members at the centre of every process.

7. What are the new digital tools launched?

EPFO has introduced:

• A re-engineered return filing module
• A new user management module
• An upgraded e-Office system
• SPARROW for performance (APAR) management
• These tools aim to make EPFO’s internal and member-facing work faster and more transparent.

Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst...Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst...

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News business EPFO Reform FAQs: All You Need To Know About New Withdrawal Rules, Vishwas Scheme, And 3.0

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