EPFO Launches Automated PF Withdrawal Feature for Unclaimed Funds
EPFO has launched an automated feature to recover unclaimed funds from dormant accounts, simplifying the process for inactive customers by transferring balances directly into their bank accounts.
Highlights
- •EPFO's auto-settlement feature targets over 31.8 million inactive accounts with Rs 10,181 crore in outstanding balances.
- •The system benefits retired or long-inactive account holders by automating the recovery process.
- •Initial settlement involves accounts with a balance of Rs 1,000 or less but is expected to cover more balances as well.
- •About 14,000 Aadhaar-verified accounts hold sums exceeding Rs 5 lakh and another 41,000 accounts range from Rs 50,000 to Rs 1 lakh.
Employees' Provident Fund Organization (EPFO) has unveiled a revolutionary feature that aims to simplify and speed up the process of recovering unclaimed funds from dormant accounts.
The EPFO is now allowing its account holders who have been inactive for an extended period to receive their unclaimed amounts directly into their bank accounts, without requiring any additional steps. This automated system creates an 'auto-settlement' feature that transfers balances in unused accounts back to customers' banking systems seamlessly and efficiently.
Initially, the EPFO has sanctioned accounts with a balance of Rs 1,000 or less for automatic settlement, which involves over 31.8 million inactive accounts with a substantial remaining value of Rs 10,181 crore. This feature benefits account holders who have either retired or had their accounts go dormant after long periods.
EPFO's newly introduced auto-settlement system targets about 14,000 accounts that exceed Rs 5 lakh in sums and another 41,000 ranges from Rs 50,000 to Rs 1 lakh. These features reduce the need for customers to submit paper claims and enhance their overall experience by allowing them to recover their unclaimed funds effortlessly.
The initial goal of this initiative is to settle around 81 lakh Aadhaar-verified accounts that have become deactivated over years, with a significant amount of Rs 5,200 crore left untouched. This new system provides an additional layer of convenience for account holders who are already reliant on digital transactions and automation in managing their financial affairs.
