EPFO eases rules: 90% PF withdrawal allowed for first home purchase

The government has reportedly revised the Employees’ Provident Fund (EPF) withdrawal rules, making it easier for first-time homebuyers to access their funds, as per reports. 

Under the newly introduced Para 68-BD of the EPF Scheme, 1952, EPFO members can now reportedly withdraw up to 90% of their PF corpus for the purchase, construction, or EMI payment of a residential property. This move has shortened the eligibility period for withdrawal from five years to just three years from the date of account opening, reports said.

Additionally, the EPFO has reportedly announced several significant changes to streamline and speed up the PF withdrawal process. From June 2025, members will reportedly be able to instantly withdraw up to ₹1 lakh for emergency needs through UPI and ATMs. The automatic claim settlement limit has reportedly been raised from ₹1 lakh to ₹5 lakh to facilitate faster disbursements. As per reports, the number of verification parameters for claims has been reduced from 27 to 18, resulting in 95% of claims now reportedly being settled within 3-4 days. 

Processes for withdrawals related to education, marriage, and medical needs have also reportedly been simplified, enhancing financial liquidity for employees across the country. These changes are expected to provide quicker and more flexible access to funds for over 6 crore EPFO members, as per reports.