The Employees’ Provident Fund Organisation (EPFO) has introduced a new facility to help employees recover small amounts lying unused in eligible old and inactive Provident Fund (PF) accounts. Under the initiative, balances of up to ₹1,000 may be transferred directly to eligible members’ bank accounts without requiring them to submit a separate withdrawal claim.
The facility is intended to help employees who have changed jobs or left behind small PF balances in accounts maintained by previous employers. Aadhaar and bank account verification will be required before the money is transferred.
EPFO to Automatically Settle Eligible PF Balances
Under the new arrangement, the EPFO will process eligible inactive PF accounts holding ₹1,000 or less. Members will not have to submit individual claims to receive these amounts.
Once the required identity and bank details have been verified, the organisation will transfer the eligible balance directly to the account holder’s bank account.
According to the Labour Ministry, around 1 lakh PF accounts are expected to benefit from the initiative. These accounts collectively hold approximately ₹5 crore.
The move is aimed at making it easier for employees to recover small amounts that may have remained unclaimed in their previous PF accounts.
EPFO Introduces WhatsApp Service for PF Account Information
Along with the automatic settlement facility, the EPFO has introduced a verified WhatsApp service to help members access important details about their PF accounts.
Through this facility, members will be able to:
- Check the total balance available in their PF accounts.
- View details of their last five account transactions.
- Access information related to their EPF passbook.
The WhatsApp service will also provide guidance on procedures associated with the Pradhan Mantri Vikassheel Bharat Rojgar Yojana (PMVBRY).
However, members cannot currently use WhatsApp to complete every EPFO service. Functions such as PF withdrawal, account transfers and claim submission will continue to be handled through the organisation’s existing service channels.
When Does an Old PF Account Become Inactive?
An old PF account does not become inactive immediately after an employee changes jobs or stops making contributions to it.
Under the Employees’ Provident Funds Scheme, 1952, an account may be treated as inactive when no contributions have been received for three consecutive years after the member reaches 55 years of age or retires, whichever is later.
Therefore, employees should check the actual status of their previous PF accounts before assuming that they qualify for the automatic settlement facility.
What Happens If the Old PF Balance Is More Than ₹1,000?
The new automatic settlement facility is currently limited to eligible inactive PF accounts with a balance of ₹1,000 or less. Members with a higher balance can still access their savings through the existing PF transfer and withdrawal procedures.
Employees can transfer their previous PF balance to their current account by linking it with their Universal Account Number (UAN). They can also use the applicable withdrawal process to claim the amount, subject to the relevant rules.
The EPFO manages a retirement fund of approximately ₹32 lakh crore for more than 80 million members. The latest initiatives are intended to make PF-related services more accessible and help employees recover savings left behind in older accounts.
Disclaimer: This article is based on the information provided in the source material. Eligibility, account status and service availability should be confirmed through official EPFO notifications and channels.