EPFO's Initiative to Revitalize Dormant Accounts: A Future-Ready Move

The Employees' Provident Fund Organisation (EPFO) is set to reclaim Rs 30.52 crore from over seven lakh inoperative accounts to the rightful account holders or their legal heirs. This move, highlighted in a Labour Ministry review meeting, is part of a broader digital initiative, EPFO 3.0, aimed at enhancing member services.

The Employees' Provident Fund Organisation (EPFO) aims to address the issue of dormant accounts, planning to release Rs 30.52 crore to rightful account holders. The Labour Ministry's recent review meeting highlighted settling over 7.11 lakh inoperative accounts, each possessing a balance of up to Rs 1,000, focusing on streamlining processes.

Inoperative accounts of the EPFO, defined as accounts without contributions for over 36 months, presently hold a total of Rs 10,903 crore. Among these, accounts with balances of Rs 1,000 or less constitute Rs 30.52 crore, slated for instant transfers into linked bank accounts. In cases of account holder demise, funds will be directed to nominated beneficiaries.

Moreover, the Ministry of Labour & Employment is embarking on the EPFO 3.0 project, pushing for a digital transformation to enhance service delivery. This initiative seeks to implement Core Banking System-enabled services, facilitating faster claim processes and comprehensive management of social security accounts, thereby minimizing grievances and expediting resolutions.

(With inputs from agencies.)