Pilot Targets Dormant Accounts
Key Highlights
- EPFO is introducing an automatic settlement system for dormant PF accounts.
- Around 1.18 lakh inactive PF accounts have already been identified and verified.
- The pilot covers 7.11 lakh dormant accounts holding ₹1,000 or less.
- Eligible members will receive money directly in their bank accounts without filing a claim.
- The pilot involves ₹30.52 crore lying unclaimed in small-balance accounts.
- C-DAC is developing the technology required for system-generated claim processing.
- If successful, the initiative will expand to 24.76 lakh dormant accounts with balances above ₹1,000.
The Employees’ Provident Fund Organisation (EPFO) is working on a new technology-driven initiative that will allow eligible members to receive money from dormant Provident Fund (PF) accounts directly into their linked bank accounts without submitting a claim application.
As part of the pilot project, EPFO has already identified and verified around 1.18 lakh inactive PF accounts and linked them with the respective members’ active bank accounts. The initiative is designed to simplify the withdrawal process for accounts that have remained inactive for a long period and still contain unclaimed balances.
In the initial phase, the project covers 7.11 lakh dormant PF accounts with balances of ₹1,000 or less, where a total of ₹30.52 crore remains unclaimed. Under the proposed system, eligible account holders will not be required to submit claim forms or visit EPFO offices. Instead, the system will automatically transfer the eligible amount, including applicable interest, to the verified bank account.
To implement this automated settlement mechanism, EPFO is upgrading its digital infrastructure with technical support from the Centre for Development of Advanced Computing (C-DAC). The organization is developing a system-generated claim process that will eliminate manual intervention for eligible cases.
According to the Ministry of Labour and Employment, the technology development is expected to be completed by the end of August. Once operational, payments under the pilot project could begin soon afterward.
If the pilot proves successful, EPFO plans to extend the facility to an additional 24.76 lakh dormant PF accounts with balances exceeding ₹1,000.
Official data shows that nearly 31.86 lakh inactive PF accounts have accumulated approximately ₹10,903 crore in unclaimed funds over the past two decades. The new initiative aims to ensure that genuine beneficiaries receive their pending PF savings quickly and without unnecessary paperwork.
