The Labour Ministry has announced that it will return small amounts of money that have been sitting unused in inactive accounts managed by the Employees’ Provident Fund Organisation (EPFO), offering relief to lakhs of subscribers.
This step applies specifically to inactive EPF accounts that have balances of ₹1,000 or less.
Labour Ministry to Refund Small Balances from Inactive EPFO Accounts
In these cases, the refund process will happen automatically, without requiring any paperwork from the account holders.
Members will not have to file applications or physically visit EPFO offices to receive their money.
The refunded amount will be transferred directly into the bank accounts that are already linked to their EPF accounts.
According to a labour ministry source quoted by PTI, “A total of Rs 30.52 crore stuck in over seven lakh inoperative accounts of the retirement fund body EPFO will soon be returned to the account holders or their legal heirs.”
During a recent review meeting, the Ministry of Labour & Employment decided to resolve 7.11 lakh inactive EPFO accounts, each containing up to ₹1,000.
An EPF account is considered inoperative if it has not received any contributions from either the employee or the employer for more than 36 months.
Overall, ₹10,903 crore is currently lying unclaimed in 31.86 lakh inactive EPFO accounts, according to PTI sources.
Out of these, close to seven lakh accounts contain ₹1,000 or less, together adding up to ₹30.52 crore in post-retirement funds.
For members whose EPF accounts are linked with Aadhaar, the accumulated balance will be transferred straight to their bank accounts.
If the original account holder has died, the money will be paid to the nominee or legal heir to ensure that the rightful person receives the funds.
Labour Ministry Begins Phased Drive to Review and Settle All Inactive EPF Accounts
The Labour Ministry has also launched a broader initiative to review and clear all inactive EPF accounts.
Officials have stated that these inactive accounts will be examined and settled in stages, with eligible beneficiaries gradually receiving their dues.
At the same time, the ministry is advancing EPFO 3.0, a large-scale digital upgrade aimed at transforming member services.
This digital reform plans to introduce Core Banking System (CBS)-enabled services so that members and establishments can access facilities more smoothly and efficiently.
The primary goals of this transformation include simplifying procedures.
It also aims to cut down on paperwork.
Another objective is to speed up the processing and settlement of claims.
The system intends to offer a single, integrated platform for all member-related services.
Under the upgraded framework, claims that successfully pass risk management checks will be approved automatically, without the need for manual review.
Because of this automation, the time required to settle claims is expected to drop from as long as 20 days to under three days.
To assess whether these new systems are effectively reducing complaints and speeding up processes, EPFO regularly holds review meetings.
These reviews focus on both the quality and quantity of grievance handling and how efficiently issues are resolved.
Comments are closed.