EPFO readies auto-refund for 1.18 lakh dormant PF accounts

More than a lakh Employees' Provident Fund Organisation subscribers are closer to receiving long-unclaimed balances without filing a claim. The Labour Ministry has identified and verified 1.18 lakh dormant accounts under a pilot refund programme, The Hindu BusinessLine reported.

The pilot covers 7.11 lakh inoperative accounts holding balances of ₹1,000 or less, where ₹30.52 crore has remained unclaimed. EPFO authenticated the account details of 1.18 lakh subscribers and linked them with active bank accounts, a step needed before refunds can begin.

Eligible subscribers will not have to submit an application. The refunds will be credited directly to their bank accounts once the technology platform is ready.

The Centre for Development of Advanced Computing has been tasked with upgrading EPFO's technology platform to enable automatic credit of pending balances, the report said.

The exercise is part of the EPFO 2.01 reform programme and builds on the Universal Account Number framework. During verification, EPFO ran a "penny drop" test for Aadhaar-linked dormant accounts, obtained updated bank information and identified deceased account holders.