BUSINESS
EPFO account holders get a major relief; Rs 10,000 crore will now reach lakhs of accounts without any paperwork. Learn how
EPFO News: If there is no activity in an EPFO account for three years, it is considered inactive. All 3.1 million inactive accounts have deposits of approximately ₹10,000 crore, while 600,000 accounts have deposits of approximately ₹600 crore.
The Ministry of Labor has made a significant decision regarding the Employees' Provident Fund (EPFO). This decision will alleviate the problems of millions of account holders. According to sources, inactive accounts with deposits of ₹1,000 or less can be returned without any paperwork. Account holders will not need to submit an application to withdraw this money. The EPFO will automatically transfer the funds to their bank accounts.
The amount will be transferred to the accounts without any paperwork.
It should be noted that out of the total 3.1 million inactive accounts, 600,000 are linked to Aadhaar and have deposits of less than ₹1,000. The EPFO will immediately deposit funds into these accounts. The remaining accounts will also receive funds gradually. It should be noted that this is a pilot project. If successful, similar funds will be transferred to the remaining 2.5 million inactive accounts.
Nearly Rs 10,000 crore in 31 lakh inactive accounts
If there is no activity in an EPFO account for three years, it is considered inactive. All 3.1 million inactive accounts have approximately ₹10,000 crore deposited, while these 600,000 accounts have approximately ₹600 crore deposited. This major decision by the Labor Ministry will benefit approximately 3.1 million people associated with the EPFO. They will now be able to easily access their funds without any paperwork or office visits.
Account inactive if there is no activity for 3 years
A total of 31.86 lakh active accounts have deposits totaling ₹10,903 crore. While approximately 7.11 lakh accounts have deposits totaling ₹30.52 crore, with deposits as low as ₹1,000. These accounts range from three to 20 years in the past. Meaning, if there has been no activity on these accounts for the past three years, they will be considered inactive.
PC:NDTV
