North India Statesman
In a move aimed at eliminating bureaucratic hurdles for millions of salaried workers, the Employees’ Provident Fund Organisation has rolled out two new convenience-driven facilities. Central to the announcement is an automated settlement mechanism for dormant accounts, ensuring that members with abandoned balances of up to ₹1,000 do not need to file manual claims to retrieve their money. Alongside this, the retirement fund body has enabled instant account monitoring services through WhatsApp, cutting down the need to visit regional offices or repeatedly log into the member e-Sewa portal.
The initiative, launched by Union Labour and Employment Minister Mansukh Mandaviya on the occasion of EPFO’s Foundation Day, targets long-standing frictions where small residual amounts left behind during career transitions remained trapped indefinitely.
Rule 1: Automatic Settlement for Inoperative Balances Up to ₹1,000
The primary highlight of the reform is the automatic payout mechanism for small, forgotten balances:
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No Claim Form Required: Subscribers whose old, inoperative PF accounts hold a balance of up to ₹1,000 will no longer have to submit Form 19 or navigate physical attestation. EPFO will initiate and execute the settlement automatically.
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Direct Bank Credit: After verifying the subscriber’s identity against linked Aadhaar records and cross-checking the active bank account on file, the funds will be credited directly to the member’s bank account.
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Scale of Beneficiaries: According to official estimates, this measure is set to benefit approximately one lakh accounts containing a combined sum of around ₹5 crore. It primarily serves employees who switched employers years ago and abandoned small fractional sums because the paperwork outweighed the recovery amount.
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Clear Cap Distinction: The ₹1,000 threshold applies strictly to the automated settlement process. Accounts carrying balances above ₹1,000 remain secure and can be transferred to current active UANs or withdrawn through regular online claims at any time.
Understanding Inoperative Accounts Under EPF Provisions
Many employees mistakenly believe an account becomes inoperative the moment salary contributions cease after changing jobs. Under the Employees’ Provident Funds Scheme, 1952, an account is classified as inoperative primarily when an employee has retired after reaching 55 years of age (or migrated abroad permanently) and no application for withdrawal has been received for three consecutive years.
For younger employees who simply switched companies, interest continues to accrue, and their balances do not turn inoperative merely due to an employment gap. However, the retirement body strongly advises transferring past balances into the current active Member ID to maintain uninterrupted service records for pension eligibility under EPS-95.
Rule 2: Account Updates and Passbook Details Now on WhatsApp
The second facility modernizes how subscribers interact with their account data by integrating core inquiries into WhatsApp:
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Instant Service Access: Account holders can now check their real-time PF balance, inspect details of their last five transactions, and receive passbook summaries directly via official WhatsApp channels without signing into the web portal.
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Assistance for Employment Schemes: The messaging interface will also assist members in verifying their status under employment promotion initiatives, including the Pradhan Mantri Viksit Bharat Rozgar Yojana.
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Security Advisory: EPFO has underscored that transactional requests—such as formal withdrawals, transfers, and nominee updates—remain anchored within the secure Unified Member Portal. Members are cautioned to engage solely with the verified green-tick official EPFO WhatsApp number and never share OTPs, Universal Account Number passwords, or banking credentials over text messages.
Eligibility Checklist for Seamless Auto-Settlement
To ensure smooth processing of the automatic credit, subscribers should confirm three key criteria on their UAN profile:
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Aadhaar Seeding: The primary UAN must be Aadhaar-authenticated with matching demographic records.
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Active Bank Account: An active savings account with a verified IFSC must be mapped and approved under the KYC tab.
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Mobile Connectivity: The mobile number linked to the Aadhaar profile should remain active to receive settlement SMS notifications and authentication alerts.
