EPFO’s Big Announcement: Refund Sent to 31 Lakh Accounts

There is big news about the Employees’ Provident Fund Organisation (EPFO). The Union Labour Ministry has taken an important step and given good news to lakhs of people, which will benefit them. The ministry has decided to refund small amounts of money lying in inactive PF accounts linked to EPFO. This money has been deposited in the account for years. Notably, the account holders will not have to fill any paperwork to get this refund.

Refund of Rs 1,000 or less

This decision of the Labour Ministry is applicable to inactive PF accounts with deposits of Rs 1,000 or less. In this case, the EPFO will refund the deposited amount without any paperwork. The account holders will not need to submit any application or visit any office, as the funds will be directly transferred from these accounts to their respective bank accounts. According to sources, the aim of this move is to bring back this unused money that has been deposited in these accounts for years.

31 lakh accounts identified

Currently, around 31 lakh inactive EPFO accounts have been identified. Out of these, about 6,00,000 accounts have deposits of Rs 1,000 or less. These funds will be transferred to Aadhaar-linked accounts at that time, while other accounts will get refunds in installments.

Reactivation as a pilot project

This decision of the Labour Ministry is considered a big step towards providing direct relief to lakhs of PF account holders. However, it is currently being implemented as a pilot project. If it goes well, the same model can be implemented for another 25 lakh inactive accounts.

Which accounts are considered inactive?

It is worth noting that if there is no transaction or activity in an EPFO account for three consecutive years (36 months), it will be considered inactive. This means that no contribution has been made or claimed in these accounts. However, a dormant account can be reactivated. To do this, the old UAN has to be linked with the new employer at the time of joining a new job.