The Labor Ministry has taken a major decision regarding the Employees Provident Fund (EPFO). This decision will solve the problems of lakhs of account holders. According to sources, inactive accounts with deposits of ₹1,000 or less will be able to be refunded without any paperwork. Account holders will not need to submit any application to withdraw this money. EPFO will automatically transfer the money to their bank account.
The amount will reach the account without any paperwork
Note that out of the total 3.1 million inactive accounts, 600,000 accounts are linked to Aadhaar and have deposits of less than ₹1,000. EPFO will deposit money in these accounts immediately. Money will be gradually transferred to the remaining accounts also. This is a pilot project. If it is successful then money will be transferred to the remaining 2.5 million inactive accounts in a similar manner.
Nearly ₹10,000 crore in 3.1 million inactive accounts
EPFO account is considered inactive when there is no activity in it for three years. All 3.1 million inactive accounts have deposits of about ₹10,000 crore, while these six lakh accounts have deposits of about ₹600 crore. This important decision of the Labor Ministry will benefit about 3.1 million people connected to EPFO. They will now be able to easily withdraw their funds without any paperwork or visiting the office.
Account inactive if there is no activity for 3 years
A total of ₹10,903 crore is deposited in 3.186 million active accounts. There are total deposits of ₹30.52 crore in about 7.11 lakh accounts, in which deposits are up to ₹1,000. The tenure of these accounts ranges from 3 to 20 years. Meaning, if there has been no activity on these accounts for the last three years, then they will be considered inactive.
