Employee Rs 30.52 crore is stuck in more than 7 lakh inactive accounts of the Provident Fund Organization (EPFO), which will soon be returned to their respective account holders or their legal heirs. This information was given by an official source on Monday. The source said that in a recent review meeting of the Ministry of Labor and Employment, Government of India, the decision to dispose of 7.11 lakh inactive accounts has been taken. The balance in each of these accounts is Rs 1000 or less.
Rs 10,903 crore is deposited in the closed PF accounts of 31.86 lakh people.
Let us tell you that that account of EPFO is considered inactive in which no contribution has been deposited by the employee or employer for more than 36 months. The source said a total of Rs 10,903 crore is deposited in 31.86 lakh inactive EPF accounts. Of these, 7 lakh accounts with balance up to Rs 1000 have an amount of Rs 30.52 crore, which will be returned on priority basis. According to the source, this PF amount will be directly transferred to the respective bank accounts in the accounts linked to Aadhaar. In case of death of the account holder, payment will be made to the nominee or legal heir.
EPFO is implementing core banking system based facilities
The process of phased settlement of all inactive i.e. closed accounts of EPF is going on at the ministry level. Meanwhile, EPFO is also working on ‘EPFO 3.0’ digital initiative, under which ‘Core Banking System’ based facilities are being implemented. It aims to reduce the time frame for settlement of claims from 20 days to less than three days and provide member services on a unified platform. Apart from this, arrangements are also being made to withdraw money from PF account through UPI, which will provide a lot of convenience and relief to the common people.
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