EPFO's 238th CBT meeting simplifies partial withdrawals and launches 'Vishwas Scheme' on penal damages
On 13 October 2025 in New Delhi, the 238th meeting of EPFO's Central Board of Trustees, chaired by Mansukh Mandaviya, merged 13 partial-withdrawal provisions into one rule allowing up to 100% of the eligible balance, and launched the 'Vishwas Scheme' to cut litigation over penal damages.
Summary
On 13 October 2025 in New Delhi, the 238th meeting of the Central Board of Trustees (CBT), EPF, chaired by Labour Minister Mansukh Mandaviya, merged 13 partial-withdrawal provisions into a single rule under three heads: essential needs, housing needs and special circumstances. Members can now withdraw up to 100% of the eligible balance, including the employer's share; education withdrawals are allowed up to 10 times and marriage up to 5 times, and minimum service is cut to 12 months for all partial withdrawals. 25% of contributions must stay as a minimum balance to earn EPFO's 8.25% interest. The board launched the 'Vishwas Scheme', under which penal damages for late remittance fall to a flat 1% a month, with graded rates of 0.25% for defaults up to 2 months and 0.50% up to 4 months; outstanding penal damages stood at Rs 2,406 crore as of May 2025. It also approved doorstep Digital Life Certificates for EPS'95 pensioners through India Post Payments Bank at Rs 50 each, borne by EPFO.
Key facts
- Meeting
- 238th CBT, EPF — 13 Oct 2025, chaired by Mansukh Mandaviya
- Partial withdrawals
- 13 provisions → 1 rule; up to 100% of eligible balance
- Limits
- Education 10 times, marriage 5 times; 12 months' service
- Minimum balance
- 25% of contributions; interest 8.25%
- Vishwas Scheme
- Penal damages 1%/month (0.25% up to 2 months, 0.50% up to 4)
- DLC
- Doorstep via IPPB, Rs 50 each paid by EPFO
Practice MCQs 3 questions
Under the 'Vishwas Scheme' approved by EPFO's CBT in October 2025, penal damages for delayed PF remittance (beyond 4 months) are set at:
Show answer
Correct answer: B — A flat rate of 1% per month
PIB: under Vishwas Scheme the rate of penal damages will be a flat 1% per month, except graded rates of 0.25% for default up to 2 months and 0.50% up to 4 months.
Consider the following statements about the partial withdrawal changes approved at the 238th CBT meeting: 1. Members can withdraw up to 100% of the eligible balance, including the employer's share. 2. The minimum service requirement for all partial withdrawals has been reduced to 12 months. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct. PIB: members can withdraw up to 100% of the eligible balance including employee and employer share, and the minimum service requirement has been uniformly reduced to 12 months for all partial withdrawals.
How many earlier partial-withdrawal provisions of the EPF Scheme were merged into a single rule by the CBT in October 2025?
Show answer
Correct answer: A — 13
PIB: CBT simplified partial withdrawals by merging 13 complex provisions into a single rule under three categories.