EPFO to work on returning money locked in idle accounts: Labour Minister

Labour and Employment Minister Mansukh Mandaviya said EPFO will run a mission-mode KYC drive and roll out a digital platform to simplify claims for money stuck in idle accounts

The Employees’ Provident Fund Organisation (EPFO) will launch a Know Your Customer (KYC) drive in a mission mode to help return money locked in inoperative accounts to claimants, Union Minister Labour for Employment Mansukh Mandaviya said on Friday. 

Speaking at the inaugural event of a newly-constructed EPFO regional office in Gujarat, Mandaviya said the government would launch a “dedicated digital platform” to simplify the process of filing claims and ensuring smooth settlement to the rightful claimant. 

There were 2.15 million inoperative EPFO accounts as on March 31, 2024, with money amounting to ₹8,505 crore, according to a written reply in the Lok Sabha by Minister of State in the Labour Ministry, Shobha Karandlaje. In the same year, the amount settled from inoperative accounts to concerned beneficiaries was ₹2,632 crore. The amount of money stuck in such accounts jumped over fivefold between 2018-19 and 2023-24, from ₹1,638.4 crore in the earlier year. 

 

Mandaviya also announced a mechanism of EPF Suvidha Providers, who will work as authorised facilitators to guide members, especially new users, in resolving issues and accessing benefits. 

“Before 2014, as per International Labour Organization (ILO), India had 19 per cent social security coverage. Today, this has risen to 64 per cent, with international organisations like the ILO and International Social Security Association commending India’s progress. Today, 940 million people are covered under social security protection, making India the second-largest in the world in social security coverage after China,” Mandaviya said. 

The minister had previously set a target of expanding social security coverage to 1 billion workers, from the current ILO estimate of 940 million by March 2026.