EPFO to Work on Returning Unclaimed Money from Inactive Accounts

The Employees’ Provident Fund Organisation (EPFO) is set to launch a mission-mode Know Your Customer (KYC) drive aimed at returning funds locked in idle accounts.  

This initiative was announced by Labour and Employment Minister Mansukh Mandaviya during the opening of a new EPFO regional office in Gujarat. 

EPFO's Mission-Mode KYC Drive 

As of March 31, 2024, there are 21.5 lakh inoperative EPFO accounts with a total of ₹8,505 crore locked in them. The Labour Ministry, led by Minister Mansukh Mandaviya, is taking steps to address this issue by initiating a mission-mode KYC drive. This drive aims to assist claimants in recovering their funds from these inactive accounts. 

In the fiscal year 2023-24, ₹2,632 crore was successfully settled from inoperative accounts to the rightful beneficiaries. The amount of money stuck in such accounts has seen a significant increase, rising over fivefold since 2018-19. 

Digital Platform for Simplified Claims 

To further streamline the process, the government plans to introduce a dedicated digital platform. This platform is designed to simplify the filing of claims and ensure the smooth settlement of funds to the rightful claimants. The initiative is part of a broader effort to enhance social security coverage in India. 

Read More: EPFO Issues New Rules to Fix EPS Contribution Errors and Protect Pensions! 

EPF Suvidha Providers and Social Security Expansion 

Additionally, the introduction of EPF Suvidha Providers will serve as authorised facilitators to guide members, particularly new users, in accessing benefits and resolving issues. This initiative is part of the government's commitment to expanding social security coverage. 

Before 2014, India's social security coverage was 19%, according to the International Labour Organization (ILO). Today, it has risen to 64%, with 940 million people covered under social security protection, making India the 2nd-largest in the world after China. 

Conclusion 

The EPFO's mission-mode KYC drive and the launch of a digital platform demonstrate a significant effort to return funds locked in idle accounts. With ₹8,505 crore at stake, these initiatives aim to ensure rightful claimants receive their due benefits while expanding social security coverage in India. 

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