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EPFO Pilot: PF Money Back Without Claims by Aug-End
27 Jul
Summary
- 1.18 lakh dormant EPFO accounts verified for auto-refunds.
- Pilot covers over 7 lakh accounts with balances below ₹1,000.
- Automatic refunds expected by August-end without claim filing.
The Labour Ministry's initiative to automatically refund dormant Employees' Provident Fund Organisation (EPFO) accounts is nearing completion. The pilot program has successfully verified bank details for 1.18 lakh inactive accounts, a crucial step towards releasing unclaimed provident fund balances.
This pilot specifically targets over 7 lakh inoperative accounts holding a total of ₹30.52 crore in balances of ₹1,000 or less. Eligible subscribers will soon receive their PF money, including interest, directly into their bank accounts without any need to file a claim.
The system, expected to be operational by August-end, is part of the EPFO 2.01 reform program. It involves developing a new 'system-generated claim' feature, a departure from the current requirement of member-submitted claims.
While approximately ₹10,903 crore remains unclaimed across 31.86 lakh dormant accounts nationwide, this pilot focuses on smaller balances. If successful, the ministry plans to extend the auto-refund system to accounts with balances exceeding ₹1,000.
