New Delhi: If you have an account with the EPFO that has become inactive (dormant), do not worry. The EPFO is now set to take a significant step regarding the funds deposited in these inactive accounts. You will no longer need to make repeated rounds to withdraw your money; in other words, you will face no difficulties whatsoever.
The EPFO is launching an automated settlement system. Under this system, unclaimed funds lying in your account will be transferred directly to your linked bank account. This comes as excellent news for PF subscribers, as they will no longer have to go through any hassle to withdraw their money. You can find all the essential details regarding this initiative in the article below.
Access Funds Without Filing a Claim
The EPFO’s new system is poised to prove immensely beneficial for PF subscribers. Employees will no longer be required to fill out a separate claim form to withdraw their funds. In the initial phase of this initiative, the focus will be on processing approximately 25% of the inactive accounts that have been verified via Aadhaar.
In terms of the total funds involved, this initiative aims to cover around 800,000 Aadhaar-verified accounts, holding a combined deposit of ₹5,200 crore. Furthermore, looking at the overall figures—based on data up to February 2026—the EPFO currently holds approximately 3.1 million inactive accounts containing total deposits amounting to ₹10,181 crore.
14,000 Accounts to Receive Over ₹5 Lakh Each
According to a report, there are approximately 14,000 accounts with deposited balances exceeding ₹5 lakh. Additionally, 38,000 accounts hold balances ranging between ₹1 lakh and ₹5 lakh. Before this, the ‘Central Board of Trustees’ had already approved the auto-settlement of inactive accounts with balances of up to ₹1,000. Find Out Under What Circumstances a PF Account Becomes Inactive
Furthermore, when a PF subscriber retires at the age of 55 and makes no contributions for three consecutive years, their account is deemed inactive. Consequently, the accrual of interest on that account also ceases. In the case of members under the age of 55, the benefit of interest continues to be provided until they reach the age of 58.
How Much Interest Will Be Earned on PF This Time?
The EPFO has set an interest rate of 8.25% on PF deposits for the financial year 2025-26. Additionally, please note that if an account remains inactive for 36 months, it is classified as ‘dormant,’ and no further interest benefits are provided on it thereafter.