There is good news for members of the Employees Provident Fund Organisation (EPFO). The Labour Ministry has initiated a process to refund ₹30.52 crore lying in 7.11 lakh inactive PF accounts to eligible account holders or their legal heirs.

This move is part of a larger government initiative aimed at closing 31.86 lakh dormant EPF accounts across the country. According to official data, many of these accounts are up to 20 years old and have seen no transactions in the last three years.

Pilot Project Launched to Close Inactive Accounts

The Ministry of Labour and Employment has identified around 7 lakh inactive accounts for a pilot project. These accounts typically hold balances ranging from ₹0 to ₹1,000 and are linked with Aadhaar.

Under this initiative, EPFO will directly transfer the money to the Aadhaar-linked bank accounts of the concerned members. The total amount involved in this pilot phase is ₹30.52 crore. If the project proves successful, refunds for the remaining inactive accounts will be processed in a similar manner.

What Makes a PF Account Inactive?

The Provident Fund (PF) is a compulsory savings scheme for private-sector employees, where both the employee and employer contribute 12% of the basic salary each. If there is no contribution, transfer, or claim for three consecutive years, the PF account is marked as inactive.

To streamline fund management, the government is now taking systematic steps to close such accounts and return the money to rightful owners.

₹10,903 Crore Lying in Dormant PF Accounts

As per official figures, EPFO currently has 31.86 lakh inactive PF accounts, holding a combined deposit of ₹10,903 crore. Many members avoid claiming small balances due to procedural hassles, which has resulted in a massive accumulation of unclaimed funds.

Small Balances Turning Into a Big Issue

Unclaimed PF balances—often small amounts—have become a significant administrative challenge. Thousands of crores remain locked in dormant accounts, affecting fund efficiency and policy implementation. The latest refund drive aims to resolve this long-standing issue and ensure members receive their rightful money.