The Employees’ Provident Fund Organisation (EPFO) has announced the return of funds from old and inactive PF accounts. Nearly Rs. 5,200 crore in unclaimed funds will be automatically transferred to members’ Aadhaar-linked bank accounts. This means subscribers will not need to file any withdrawal claims.
The plan will initially cover 8.1 lakh Aadhaar-verified inoperative accounts. Some accounts have more than Rs. 5 lakh, while many others have balances between Rs. 50,000 and Rs. 5 lakh. The pilot will start with accounts holding Rs. 1,000 or less.
A PF account becomes inoperative if no contributions are made for three years after retirement. Accounts of members under 55 continue to earn interest until they turn 58. As of February 2026, there are 31.8 lakh inactive EPFO accounts, holding Rs. 10,181 crore in total. Many accounts have been inactive for over 20 years.
The auto-settlement system will credit small balances directly to bank accounts. For accounts with larger balances, EPFO will plan future phases based on feedback from this pilot. Members who joined after October 2017 will get priority in later settlements.
This initiative will help employees get their unclaimed funds faster. It will also reduce EPFO’s workload and improve record-keeping. Unlocking these funds will allow money to circulate in the economy and benefit members who may have forgotten about old accounts.
Officials say this system uses Aadhaar verification and digital technology to make transfers safe and easy. If the pilot works well, larger balances in inactive accounts will also be cleared automatically in the coming months.
This move highlights EPFO’s push for digital governance and financial inclusion. Millions of members will now receive their provident fund savings without delays, improving trust in the system.
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