Inoperative EPF accounts soar to Rs 8,505 crore in FY 2023-24. This is a sharp rise from Rs 1,638 crore in 2018-19. The increase highlights a significant trend of dormant accounts in the Employees’ Provident Fund (EPF) scheme, according to the Employees’ Provident Fund Organisation (EPFO).
Rise in inoperative EPF accounts: A growing concern
The number of inoperative EPF accounts has surged. There are now 21,55,387 accounts holding Rs 8,505.23 crore. This is a stark increase from 6,91,774 accounts, which had only Rs 1,638.37 crore in 2018-19. In FY 2022–23, inoperative accounts had Rs 6,804.88 crore. These figures show a clear rise in dormant funds in the EPF system.
EPFO’s efforts to settle inoperative EPF accounts
The EPFO is actively working to return funds to their rightful owners. In FY 2023-24, it settled Rs 2,632.29 crore, slightly lower than the Rs 2,673.97 crore settled in FY 2022-23. The EPFO emphasizes that all inoperative accounts have identifiable claimants. Claims are processed once submitted and scrutinized.
Raising awareness for improved EPF utilization
The EPFO is making efforts to raise awareness and encourage better use of EPF funds. It is using educational videos, webinars, social media, and print media to reach out to employees. These initiatives aim to inform employees about the importance of engaging with their provident funds.
The EPFO administers three key schemes: the Employees’ Provident Fund Scheme 1952, the Employees’ Pension Scheme 1995, and the Employees’ Deposit Linked Insurance Scheme 1976. These efforts aim to ensure that employees have better access to their funds.
In conclusion, the rise in inoperative EPF accounts highlights the growing need for better account management. The EPFO’s proactive steps in settling claims and raising awareness will help employees access their dormant funds more effectively.These efforts are crucial for ensuring that employees remain engaged with their provident funds, which is vital for long-term financial security. By increasing transparency and communication, the EPFO aims to reduce the number of inactive accounts and boost overall participation in the scheme.
