EPFO Refund: According to PF rules, an account is considered “inoperative” if it receives no new contributions, either from the employee or the company, for 36 consecutive months. Currently, the EPFO has approximately 31.86 lakh such accounts, with deposits of ₹10,903 crore.
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Inoperative EPF Accounts Money Refund: The Ministry of Labor has introduced a scheme for millions of employed people in the country that will directly benefit their pockets. It’s often seen that people ignore PF accounts with small balances when leaving their old jobs, leaving crores of rupees stuck in the system. Now, the government has decided to automatically refund the money from all “inoperative” EPFO accounts with deposits of ₹1,000 or less. The most comforting thing is that you won’t have to run to any office to get this money. Let us explain the process.
Is your account also “inoperative”?
According to PF rules, if no new contributions are deposited in an account for 36 consecutive months, or three years, from either the employee or the company, it is considered “inoperative.” Currently, the EPFO has approximately 31.86 lakh such accounts, containing ₹10,903 crore in deposits. The government has initially selected 7.11 lakh accounts with balances less than ₹1000. A total of ₹30.52 crore deposited in these accounts will be transferred directly to customers’ bank accounts.
What is the process for receiving the money?
The biggest highlight of this initiative is its automatic nature. The Ministry of Labor has decided that no paperwork will be required. Account holders whose PF accounts are linked to their Aadhaar card and whose bank details (KYC) are updated will have the money credited directly to their bank accounts. If the original account holder has passed away, the amount will be provided to the nominee or legal heir registered by them.
Settlement will now take place within 3 days under EPFO 3.0
The government is not only cleaning up old accounts but also making the entire system more hi-tech. The EPFO 3.0 project is bringing some major changes. With the implementation of the new digital system, the 20-day settlement time for PF claims will be reduced to just 3 days. Claims that meet the risk criteria will be approved immediately through computer software without any official scrutiny. This will eliminate the scope for corruption and increase transparency.
Quick resolution of complaints
The ministry is now holding regular review meetings to address the grievances of PF subscribers. The government aims to ensure a similarly smooth resolution of inactive accounts with large balances in the future. This move will not only clear the old EPFO database but also enable millions of employees to get their hard-earned money back without any hassle.
