The Employees Provident Fund Organisation (EPFO) is actively engaging with its subscribers to encourage the withdrawal of unclaimed funds that are currently sitting in inoperative accounts. An official announced that the EPFO is in the process of establishing an auto-settlement feature aimed at facilitating the transfer of these unclaimed amounts directly into the subscribers’ bank accounts without the need to submit a formal claim. This initiative specifically targets approximately 8.1 lakh Aadhaar-verified inoperative accounts that collectively hold around Rs 5,200 crore in unclaimed money.

Details of Unclaimed Balances

Within this pool of unclaimed accounts, around 14,000 have balances exceeding Rs 5 lakh, while an additional 38,000 accounts contain between Rs 1 lakh and Rs 5 lakh. Furthermore, 41,000 accounts have unclaimed amounts ranging from Rs 50,000 to Rs 1 lakh. During a recent meeting of the Central Board of Trustees (CBT), the decision was made to enable automatic settlement for inoperative accounts holding unclaimed balances of Rs 1,000 or less, facilitating transfers to registered bank accounts.

Building upon the insights gained from this project, the EPFO plans to implement a distinct strategy for managing other inoperative accounts. Priority will be given to members who joined after October 2017, ensuring that these individuals benefit from the forthcoming initiatives aimed at recovering their unclaimed balances.

Understanding Inoperative Accounts

An account is classified as inoperative in the EPFO when it ceases to earn interest. This typically applies to members who have retired after reaching the age of 55 and have not made contributions for a period of three years. However, for subscribers under the age of 55, the account continues to accrue interest until the member turns 58. Data from February 2026 indicates that there are 31.8 lakh inoperative accounts with a total of Rs 10,181 crore remaining unclaimed.

Among the inoperative accounts, nearly 7 lakh have been inactive for over 20 years, while 1.8 lakh accounts fall within the 10 to 20-year category. Additionally, approximately 13 lakh inoperative accounts have remained dormant for between 5 to 10 years. The EPFO’s ongoing efforts are expected to streamline the process for subscribers, ensuring that they are able to access their unclaimed funds with increased convenience and efficiency.

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