Employees' Provident Fund Organisation (EPFO) has recently cautioned members against using their provident fund corpus for unauthorized reasons as per official guidelines. The caution is issued on the eve of EPFO 3.0, which is a new online portal to facilitate withdrawal and related services faster. However, EPFO made it clear that the members who are using PF savings for unauthorized schemes are liable to recovery action and penalties.

What premature withdrawal means

A premature withdrawal refers to the withdrawal of funds from the Employee Provident Fund before retirement either in whole or in part. While exceptions in certain withdrawals are provided in the EPF Scheme, 1952, any deviation is a transgression. For example, withdrawal for an unstated purpose not under the scheme may invi

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