In a move that could benefit lakhs of people, the Labour Ministry has decided to refund small balances lying in inoperative accounts linked to the Employees’ Provident Fund Organisation (EPFO).
According to sources, the step is aimed at returning money that has remained unused for years.
The decision applies to inoperative accounts where Rs 1,000 or less is lying in the account. In such cases, the money will be returned without any paperwork. Account holders will not have to submit any application or visit any office. EPFO will directly transfer the amount to the concerned bank accounts.
31 LAKH ACCOUNTS IDENTIFIED
At present, there are around 31 lakh inoperative EPFO accounts. Out of these, nearly six lakh accounts have Rs 1,000 or less deposited.
For accounts that are linked with Aadhaar, the transfer will happen immediately. For others, the money will be sent in phases.
PILOT PROJECT FOR NOW
This is currently being rolled out as a pilot project. If it works smoothly, the same method may be extended to the remaining 25 lakh inoperative accounts. An EPFO account is treated as inoperative if there is no transaction or activity for three consecutive years.
The move is being seen as a step towards providing direct relief to account holders as it aims to simplify settlements, cut paperwork and help workers access their unused savings faster.
