There is good news for employees. The Employees’ Provident Fund Organisation (EPFO) is planning to introduce a new auto-settlement system.
This system will help people withdraw money that is stuck in inactive EPF accounts more easily.
Through this step, EPFO is expected to clear around ₹5,200 crore from such accounts.
What is the New Plan?
The new system is specially designed for EPF accounts that have had no transactions for a long time. In the beginning, it will be applied to about 8.1 lakh Aadhaar-linked accounts.
The main aim is to send money directly to people’s bank accounts without requiring them to file a claim.
Starting with Small Amounts
Under this plan, accounts with a balance of ₹1,000 or less will be included first.
This means if you have a small amount left in your old EPF account, it can be automatically transferred to your bank account.
Number of Inactive Accounts
As of February 2026, around 31.8 lakh EPF accounts in India have become inactive. More than ₹10,000 crore is stuck in these accounts.
Breakdown of balances:
About 14,000 accounts have more than ₹5 lakh
Around 38,000 accounts have between ₹1 lakh and ₹5 lakh
Nearly 41,000 accounts have between ₹50,000 and ₹1 lakh
These numbers show that a large amount of people’s money is lying unused.
When Does an EPF Account Become Inactive?
An EPF account becomes inactive if there are no contributions for three years.
However, interest continues to be added until the account holder turns 55 years old. After that, no interest is given.
Who Will Benefit First?
Priority will be given to employees who:
Joined after October 2017
Have completed Aadhaar linking and KYC
These users will benefit first from the new system.
Why This Step is Important
This move will:
Help people recover their stuck money
Improve transparency in the system
Remove the need to apply again for old accounts
Final Advice
This auto-settlement system by EPFO can benefit millions of people. If you have an old PF account, make sure to:
Update your details
Link your Aadhaar
