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EPFO Approves Auto-Settlement for 1.33 Lakh Inoperative Accounts with Balances ≤ ₹1,000 to Boost Financial Inclusion

Target:UPSC GS-IIIMPSCSSC GATeachingBankingPrelims HighMains MediumStatic GK Link
06 Mar 2026
~2 min
Source: Indian Express
Key Data:31.83 lakh inoperative accounts₹10,181 crore unclaimed balance1.33 lakh accounts in pilot₹5.68 crore pilot amount6.93 lakh accounts inactive >20 years₹28.34 lakh crore EPFO corpus
Bodies:EPFOCentral Board of Trustees (CBT)
Practice MCQs from today's news ▸
What This Article Covers

1.EPFO's Central Board of Trustees approved auto-settlement for inoperative accounts with balances ≤ ₹1,000 in its 239th meeting.

2.The pilot targets over 1.33 lakh accounts holding ₹5.68 crore, with plans to extend to higher balances later.

3.This move aims to tackle the ₹10,181 crore locked in 31.83 lakh inoperative accounts, streamlining the claims process.

The Big Picture
Prelims · HighMains · Medium

EPFO's Central Board of Trustees has approved a pilot for auto-settling 1.33 lakh inoperative accounts with balances ≤ ₹1,000 directly to members' bank accounts. This addresses a significant unclaimed funds issue and simplifies the claims process for members. It is a key governance reform for financial inclusion and efficiency.

Exam Lens

Quick Exam Facts From News

Total Inoperative Accounts31.83 lakh
Total Unclaimed Balance₹10,181 crore
Accounts in Pilot (≤ ₹1,000)1.33 lakh
Pilot Amount₹5.68 crore
Accounts Inoperative >20 Years6.93 lakh (21.75%)

1-Minute Revision

  • ›Total Inoperative Accounts: 31.83 lakh
  • ›Total Unclaimed Balance: ₹10,181 crore
  • ›Target this Data: 31.83 lakh inoperative accounts holding ₹10,181 crore (as of March 31, 2025).
  • ›Target this Nodal Body: Central Board of Trustees (CBT) of EPFO.
  • ›Target this Legal Point: EPFO operates under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The Employees' Provident Fund Organisation (EPFO) functions under which Union Ministry?

Q2Statement-basedHard

Consider the following statements regarding EPFO's inoperative accounts:

1. An EPF account becomes inoperative if no contribution is made for three continuous years after the member attains 58 years of age.

2. Inoperative accounts with balances above ₹1 lakh constitute the majority of the total unclaimed amount of ₹10,181 crore.

3. The Central Board of Trustees (CBT) of EPFO has approved a pilot for auto-settlement of inoperative accounts with balances up to ₹1,000.

Which of the statements given above is/are correct?

Q3Data-centricMedium

As per the article, what is the total number of inoperative EPF accounts as of the latest data?

Q4Application/ImpactMedium

What is the primary objective behind EPFO's pilot project for auto-settlement of inoperative accounts with balances up to ₹1,000?

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