EPFO to Announce Fund Transfers from Non-Active Accounts: Expert
EPFO is planning to transfer funds from millions of inactive PF accounts to holders. The amounts will be transferred directly to the Aadhaar-linked bank accounts, with a priority given to smaller balances that have remained in inactive accounts for years. The initiative aims to improve accessibility and prompt benefit delivery.
Highlights
- •EPFO plans to transfer funds from inactive PF accounts back to account holders.
- •Inactive accounts are categorized as those without contributions for over 36 months, often harboring small, forgotten sums.
- •The transfer will include the balance in the account and any interest accrued up until the account was inactive.
- •The funds will be directly transferred to the Aadhaar-linked bank accounts of the EPF account holders.
According to recent reports, the Employees' Provident Fund Organization (EPFO) is set to transfer funds from millions of inactive accounts back to PF account holders. This announcement comes amid several questions about the types of inactive accounts that will be included and whether the refunded amount will include accrued interest.
Currently, an EPFO account is deemed inactive if contributions have not been made by either the employee or employer for over 36 months. This trend often results in small sums lingering in these accounts for years, forgotten or not transferred by employees. The total amount held in 31.86 lakh inactive EPF accounts amounts to Rs 10,903 crore.
The amount will be directly transferred to the respective bank accounts linked to the Aadhaar of the EPF account holders, or to the nominee or legal heir if the account holder has passed away. Experts also highlight that the old balance can be transferred to a new EPFO account, either online or offline, or the entire amount can be withdrawn by retirees who choose this option.
EPFO 3.0, a digital initiative, aims to streamline claims processing and ensure that eligible members can receive their benefits in a prompt, contactless manner. The EPFO also introduced the facility of UAN generation and activation through the UMANG app, which allows members to access their benefits securely without the need for physical verification.
