NEW DELHI
The Employees’ Provident Fund Organisation (EPFO) is launching a massive digital cleanup to return forgotten money to workers.
The reports confirmed a new automated system will soon send balances from inactive accounts directly into subscribers’ Aadhaar-linked bank accounts. This means thousands of people will receive their rightful savings without ever having to file a single piece of paper.
In this first major phase, the EPFO plans to settle about 8 lakh accounts, worth an estimated Rs 5,200 crore. The range of savings is significant: while many accounts are small, nearly 14,000 hold over Rs 5 lakh each, and another 38,000 contain between Rs 1 lakh and Rs 5 lakh. By using automation, the government aims to clear the massive backlog of “dormant” accounts that have stopped earning interest.
Currently, an account is labeled inactive if no new money is added for three years after a member turns 55. As of last month, the EPFO was sitting on over 31 lakh such accounts, totaling a staggering Rs 10,181 crore. Some of these deposits have been untouched for over 20 years.
By skipping the traditional claim process, the EPFO is making it easier for retirees and former employees to access their hard-earned money. This shift not only reduces stress for citizens but also improves transparency within the system. With an interest rate of 8.25 percent held steady for another year, the move ensures that these long-held funds finally reach their owners’ pockets.
