EPFO to Automatically Settle Unclaimed Funds in Inoperative Accounts
The Employees Provident Fund Organisation (EPFO) is intensifying efforts to facilitate the withdrawal of unclaimed money lying idle in inoperative accounts. According to an official, the EPFO is working on developing an auto-settlement facility that will allow account holders to receive these funds directly into their bank accounts without the need to file claims.
Targeting Aadhaar-Verified Accounts
This initiative is set to address nearly 8.1 lakh Aadhaar-verified inoperative accounts, which collectively hold approximately Rs 5,200 crore in unclaimed balances. Among these, about 14,000 accounts have more than Rs 5 lakh each lying unclaimed, while 38,000 accounts hold between Rs 1 lakh and Rs 5 lakh, and another 41,000 accounts have balances ranging from Rs 50,000 to Rs 1 lakh.
Central Board of Trustees Approval
In a recent meeting, the Central Board of Trustees (CBT) approved the auto-settlement of inoperative accounts with unclaimed balances of Rs 1,000 or less, directing the funds to registered bank accounts. The official stated that based on the outcomes of this pilot project, a separate strategy will be designed to handle other accounts, with priority given to members who joined after October 2017.
Understanding Inoperative Accounts
An inoperative account in the EPFO is defined as one that has ceased to earn interest, primarily belonging to members who have retired after the age of 55 and have had no contributions made for three years. However, for subscribers under 55, the account continues to earn interest until they reach 58 years of age.
Scale of Unclaimed Funds
As of February 2026, there were 31.8 lakh inoperative accounts with a total of Rs 10,181 crore lying unclaimed. This includes nearly 7 lakh accounts that are older than 20 years, 1.8 lakh accounts between 10 to 20 years old, and approximately 13 lakh accounts that are 5 to 10 years old. The auto-settlement facility aims to clear a significant portion of these idle balances, enhancing financial accessibility for subscribers.
