Claim Relief: EPFO to Directly Transfer ₹30.52 Crore to Aadhaar-Linked Accounts of 7.11 lakh Inactive Accounts

As per CNBCTV18 report, The Employees’ Provident Fund Organisation  (EPFO)is set to clear 7.11 lakh inactive accounts, each holding ₹1,000 or less, by transferring the balances straight to Aadhaar‑seeded bank accounts. 

Direct Credit of ₹30.52 crore to Account holders 

In the first phase, EPFO will settle 7,11,000 accounts classified as inactive and automatically credit the total amount of ₹30.52 crore to the EPFO‑linked bank accounts of the subscribers. Where the subscriber is deceased, the amount will be transferred to the nominee recorded on the account. 

Definition and Scale of Inactive EPFO Accounts 

An account becomes inactive after 36 months of no activity once the member reaches 55 years. Such accounts stop earning interest after the member turns 58. Currently, there are 31.86 lakh inactive accounts holding a combined balance of ₹10,903 crore across the country. 

Read More: EPFO’s Higher Pension Option Is Back: Who Will Actually Benefit?! 

Government’s Phased Settlement plan 

The Ministry of Labour and Employment plans to address all inactive accounts in stages, encouraging members to withdraw their balances. The initial move aims to remove the paperwork barrier for small balances, ensuring that funds are returned promptly. 

Impact on subscribers 

Subscribers with balances of ₹1,000 or less will receive their money without filing a claim form. This approach is expected to reduce the number of dormant accounts and improve the overall efficiency of the EPFO system. 

Conclusion 

EPFO’s decision to auto‑credit ₹30.52 crore from 7.11 lakh inactive accounts represents a direct method of returning unclaimed funds, bypassing traditional claim procedures and targeting small balances. 

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