Old EPFO account? Check if your funds will be auto-credited
What's the story
The Employees's Provident Fund Organisation (EPFO) is launching a pilot project to automate the settlement of claims for small inoperative accounts. The initiative aims to speed up the withdrawal process and allow members to access their long-unclaimed funds more quickly. Under this new scheme, EPFO will automatically settle claims for accounts with unclaimed balances of ₹1,000 or less without requiring a formal withdrawal request from the account holder.
Implementation details
Pilot project to cover 1.33 lakh accounts
In the first phase of this reform initiative, around 1.33 lakh such accounts will be covered. The total amount involved in these accounts is nearly ₹5.68 crore. The decision was taken during EPFO's latest (239th) board meeting held last Monday. An inoperative account is one where no contributions have been made for three continuous years after the member turned 55 or from retirement date, whichever is later.
Account statistics
Direct credit to Aadhaar-linked bank accounts
As of March 31, 2025, there were over 31.83 lakh inoperative accounts holding a total of ₹10,181 crore. This figure does not include international workers. The pilot project will directly credit amounts to members' Aadhaar-linked bank accounts registered with EPFO without requiring fresh claims or documentation. This is expected to simplify the withdrawal process and expedite dues disbursement for members.
Reform expansion
Potential expansion and broader impact
Depending on the pilot's success, EPFO may expand this facility to accounts with balances above ₹1,000. This would further strengthen its focus on member-centric reforms. The initiative is also expected to enable faster credit of the long-pending balances, reduce procedural delays, improve data accuracy, and enhance the overall service delivery.
Future plans
Integration with UPI for seamless withdrawals
The Union Labour Ministry has been working to streamline processes for users. One such effort is a system that would allow eight crore Employees' Provident Fund (EPF) members to withdraw money directly using the Unified Payments Interface (UPI). This project, targeted for rollout by April 2026, aims to provide quicker access to funds and improve service efficiency.