EPFO Inactive Accounts: If you have an old EPFO ​​account with less than ₹1,000, this news is a relief. The Ministry of Labor has decided to settle approximately 7.11 lakh such inoperative accounts.

The funds deposited in these accounts will be transferred directly to your bank account, provided your account is linked to Aadhaar. If the account holder is no longer alive, the amount will be received by their nominee or legal heir.

What will happen to accounts with balances exceeding ₹1,000?

People with balances exceeding ₹1,000 in their inactive accounts will not receive this money directly. According to EPFO ​​rules, if there are no transactions in an account for 36 months (3 years), it is considered inoperative. Such accounts are blocked for security reasons.

When is an account considered inoperative?

An EPF account becomes inoperative when a person retires after the age of 55 and no contributions are received for 36 months. Additionally, an account becomes inoperative if the account holder moves abroad or dies. Note that interest on the account stops accruing after becoming inoperative.

What to do to withdraw a larger amount?

To withdraw more than ₹1,000, you must go to the EPFO ​​portal and request an unblocking.

• First, update your UAN and KYC (Aadhaar, PAN, bank details).
• Go to the EPFO ​​portal and submit the unblocking request through the Inoperative Account Assistant.
• The account will be unblocked after verification by the employer and EPFO ​​officials.
• You can then withdraw the full amount by filling out Form 19.

What's the advice?

It's best to transfer your EPF account from your old company to the new one if you change jobs. If you're not working, withdraw the funds and close the account to avoid losing interest.