Also Read: EPFO Budgets 12.4% rise in 2026-27 contributions
The proposed facility will initially cover around 8.1 lakh Aadhaar-verified inoperative accounts, with an estimated Rs 5,200 crore lying unclaimed, TOI reported, citing an official. Of these, about 14,000 accounts hold over Rs 5 lakh each, while 38,000 accounts have balances between Rs 1 lakh and Rs 5 lakh, and 41,000 accounts fall in the Rs 50,000– Rs 1 lakh range.
Pilot for small balances approved
The Central Board of Trustees has approved auto-settlement for accounts with unclaimed balances of Rs 1,000 or less, allowing funds to be directly credited to registered bank accounts.
“Based on the learnings from this project, a separate initiative is planned to design a strategy for other accounts. Members who joined after October 2017 will be given priority,” the official said.
Over 31 lakh inoperative accounts
An EPFO account becomes inoperative when it stops earning interest, typically after no contributions are made for three years post-retirement at age 55. For members below 55, however, accounts continue to earn interest until they turn 58.
Also Read: EPFO 3.0: Government reveals status of centralised pension system, auto claim settlement and EPF account transfer claimsAs of February 2026, there were 31.8 lakh inoperative accounts with a total unclaimed balance of Rs 10,181 crore. Nearly 7 lakh of these accounts are over 20 years old, while 1.8 lakh are between 10 and 20 years old. Around 13 lakh accounts fall in the 5–10 year category.
The move is expected to streamline withdrawals and reduce the accumulation of unclaimed funds within the system.
(With inputs from TOI)