Particle.news
Download on the App Store

Government To Auto-Credit Small Balances From Dormant EPFO Accounts In Pilot

Payments will go straight to Aadhaar-linked bank accounts as the ministry tests a model it says could later cover higher balances.

Overview

  • Phase one targets about 7.11 lakh inoperative EPF accounts with balances up to Rs 1,000, totaling roughly Rs 30.52 crore.
  • Beneficiaries will not file claims or submit documents; EPFO will facilitate Aadhaar seeding where needed for direct transfers.
  • Official data show 31.86 lakh inoperative EPFO accounts hold around Rs 10,903 crore, underscoring the cleanup’s potential scale.
  • Some outlets, citing government sources, report the pilot may credit about Rs 650 crore to nearly six lakh accounts within a month, a figure not formally confirmed.
  • The ministry signaled phased expansion beyond Rs 1,000 after the pilot and paired the move with rule changes allowing merit-based scholarship top-ups for eligible students.