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EPFO: If you have an old PF account that hasn't been used for years, this news is useful. The Employees' Provident Fund Organization (EPFO) is now going to refund small amounts lying in such accounts. This step, taken on the instructions of the Union Labor Ministry, will benefit millions of people. Let's learn more about it:

Indeed, many employees in the country fail to pay attention to their old PF accounts after changing jobs. As a result, small amounts remain in those accounts, with no transactions occurring for years. Now, the government has decided that EPFO ​​will automatically refund inactive accounts with a balance of ₹1,000 or less.

Account holders will not need to do anything during this entire process. There's no need to fill out any forms or visit the office. The department has already identified such accounts, and the money will be transferred directly to the bank account linked to Aadhaar. This means that if your bank account and Aadhaar are updated, the amount will be automatically transferred.

According to reports, approximately 3.1 million inactive PF accounts have been identified. Approximately 600,000 of these accounts have deposits of ₹1,000 or less. These accounts will receive the money first. Payments to accounts with larger balances may be made in phases.

This scheme is currently being launched as a trial. If all goes well, the same system could be implemented in the remaining 2.5 million inactive accounts. The government wants to ensure that employees' hard-earned money doesn't go to waste.

What is an inactive account?

It's also important to understand what constitutes an inactive account. If there are no deposits or withdrawals in a PF account for three consecutive years, it is considered inoperative. However, such an account is not permanently closed. Upon landing a new job, you can reactivate the account by linking your old UAN with your new employer.

In such a situation, if you've ever changed jobs and still have an old PF account, be sure to check your bank and Aadhaar details. Your deposit may soon be credited directly to your account.

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