Inoperative EPF accounts with up to Rs 1,000 to settle automatically
Times of India
by TNNFebruary 23, 2026
AI-Generated Deep Dive Summary
The Employees' Provident Fund Organisation (EPFO) in India is set to launch a pilot program aimed at automatically refunding unclaimed money from nearly seven lakh inactive accounts with balances up to Rs 1,000. This initiative will directly transfer the funds to Aadhaar-seeded bank accounts of eligible members without requiring any applications or paperwork. The move is expected to settle approximately Rs 30 crore and streamline the process for account holders whose EPF accounts have become inoperative due to lack of contributions or claims over a long period.
An EPF account becomes inoperative when no contributions are made, and no claim is filed for 36 months after the member becomes eligible for final settlement. Eligibility typically arises upon retirement at age 58, permanent migration abroad, or in the event of death. The pilot program will initially focus on accounts with small balances, while efforts are also underway to track members with higher unclaimed balances.
This step by EPFO addresses a long-standing issue of unclaimed funds in inactive accounts, which currently number nearly 31 lakh across India, holding a total amount of Rs 10,900 crore. The initiative not only simplifies the refund process but also ensures that eligible members receive their dues without additional effort on their part.
For readers interested in global financial policies and innovations, this move highlights India's efforts to enhance financial inclusion and improve governance of social welfare schemes. By automating refunds for small-balance accounts, EPFO aims to ensure that employees do not face unnecessary hurdles in accessing their entitled benefits, ultimately fostering greater trust in the system.
This pilot program underscores the importance of leveraging technology and data-driven solutions to address complex administrative challenges. As India continues to prioritize financial inclusion
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Originally published on Times of India on 2/23/2026