2 weeks ago

21 lakh inactive EPF accounts hold ₹8,500 crore; govt acts

21 lakh inactive EPF accounts hold ₹8,500 crore; govt acts
21 lakh EPF accounts with ₹8,500 crore balance are inactive: How is the govt fixing it? · livemint.com

Many workers in India have a special savings account called a Provident Fund, where a part of their salary is saved for the future.

The government found that more than 21 lakh of these accounts have not been touched for a long time.

Together, the money in these quiet accounts is worth about ₹8,500 crore.

Most of the time, this happens because workers leave their jobs and forget to ask for their money.

The government keeps track of how many such accounts exist every year, and the number has been growing.

One reason is that the government is now better at finding these accounts using Aadhaar details.

If you do not take your money out even after you turn 58, the account stops earning interest.

To help people, the government has made a new plan where claims can be started automatically.

This way, the money can be sent directly to people's bank accounts without them having to do much.

Key facts

Inoperative accounts (2023-24)
21,55,387
Balance in inoperative accounts (2023-24)
₹8,505.23 crore
Claims settled (2023-24)
₹2,673.98 crore
Inoperative accounts (2022-23)
17,44,518 with ₹6,804.88 crore balance
Inoperative accounts (2020-21)
11,72,923 with ₹3,930.85 crore balance
Main reason for inactivity
Non-filing of claims by members after exiting service
Key government measure
Auto-initiation of EPF claims under the new EPF Scheme, 2026
Interest rule
Interest is credited until the member turns 58; after that, interest stops and the account becomes inoperative

Sources

Related news