The Employees Provident Fund Organisation has initiated measures to help subscribers access unclaimed funds lying in inoperative provident fund accounts. The organisation is focusing on simplifying the withdrawal process and ensuring that account holders receive their money without unnecessary delays.
According to officials, EPFO is working on developing an auto settlement facility that will allow subscribers with Aadhaar verified accounts to receive their unclaimed balances directly into their bank accounts. This system is expected to eliminate the need for filing manual claims, thereby reducing paperwork and processing time.
Inoperative accounts typically refer to those where no contributions have been made for a prolonged period. Many such accounts continue to hold significant amounts of unclaimed money, often due to lack of awareness or procedural difficulties faced by subscribers. The proposed system aims to address these challenges by automating the settlement process.
Data indicates that nearly 8.1 lakh Aadhaar verified inoperative accounts are expected to be covered under this initiative. The total unclaimed balance in these accounts is estimated to be around Rs 5200 crore. Among these, approximately 14000 accounts have more than Rs 5 lakh lying unclaimed, while around 38000 accounts hold amounts between Rs 1 lakh and Rs 5 lakh. Additionally, about 41000 accounts contain balances ranging from Rs 50000 to Rs 1 lakh.
Officials have stated that the new system will prioritize accounts that are fully verified and linked with Aadhaar, ensuring secure and accurate transfer of funds. The move is expected to benefit a large number of subscribers who have been unable to access their provident fund savings due to procedural complexities or outdated account details.
The initiative is also part of broader efforts by EPFO to modernize its services and improve user experience. Over the years, the organisation has introduced several digital services aimed at making it easier for subscribers to manage their accounts and access their funds. The auto settlement facility is seen as another step in this direction.
Experts believe that this move will not only help individuals recover their savings but also improve overall financial efficiency. Unclaimed funds often remain idle for years, and enabling quicker access can contribute to better financial planning for subscribers.
The EPFO has encouraged subscribers to ensure that their account details, including Aadhaar and bank information, are updated and verified. This will help them benefit from the new system once it is implemented.
The initiative is expected to be rolled out in phases, with priority given to accounts that meet verification criteria. Authorities have indicated that further updates and guidelines will be issued as the system is finalized.
Overall, the EPFO’s move to introduce auto settlement for inoperative accounts is aimed at enhancing transparency, reducing delays and ensuring that subscribers receive their rightful funds in a timely manner.