There's some very comforting news for Employees' Provident Fund Organization (EPFO) account holders. The Labor Ministry has made a major decision related to PF. Under the ministry's new scheme, funds from closed accounts will be deposited directly into your bank account without any paperwork.

Which accounts will receive the funds?
This new scheme covers inoperative or dormant accounts with deposits of ₹1,000 or less. According to information provided by the department, account holders will no longer need to submit any applications. The department will immediately transfer the funds to the bank accounts of those whose accounts are linked to Aadhaar. The remaining accounts will also be disbursed gradually.

What is the government's plan?
According to regulations, if there is no activity in an EPFO account for three consecutive years, it is considered inoperative. This refund process has currently been initiated as a pilot project. In the initial phase, approximately 600,000 accounts have been selected from a total of 3.1 million inactive accounts. If this initial pilot proves successful, the same automated process will be implemented for the remaining approximately 2.5 million inactive accounts.

Funds worth thousands of crores of rupees are stuck.

A look at the data reveals that there are a total of 3.186 million inactive EPFO accounts, with deposits totaling approximately ₹10,903 crore. Meanwhile, accounts with small deposits of up to ₹1,000 number approximately 600,000, with a total deposit of ₹30.52 crore. These accounts have not recorded any financial activity for a period ranging from three to twenty years, leaving the funds sitting idle.

This major decision by the Ministry of Labor will directly benefit millions of EPFO members. Previously, people would forget their old accounts after changing jobs or avoid the complex paperwork required for small amounts. This new system will allow account holders to access this money easily and without any hassle. The path to resolving issues in accounts that have been untransferred for years is now clear.

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