The Employees’ Provident Fund Organisation (EPFO) manages millions of EPF accounts, but a large number of them have become inactive over time. According to EPFO data, as of March 2024, approximately ₹8,505.23 crore lies unclaimed in 21.55 lakh dormant accounts. The sharp rise in inactive accounts is evident when compared to the ₹1,638.37 crore deposited in 6.91 lakh dormant accounts during 2018-19.
An EPF account becomes inactive if no contributions are made for three years or if the account holder reaches 58 years of age without withdrawing funds. If you have an inactive EPF account and wish to access your money, here’s everything you need to know.
What Happens to an Inactive EPF Account?
Inactive EPF accounts do not earn interest once the account holder turns 58 years old. However, for accounts that become inactive due to lack of contributions but before the holder turns 58, interest continues to accumulate. It’s important to address inactive accounts promptly to ensure access to the funds.
How to Reactivate an Inactive EPF Account
1. Check If Your Account Is Inactive
- An account is considered inactive if no contributions have been made for three consecutive years.
- If the account holder is 58 years or older, the account is marked dormant.
2. Steps to Reactivate Your EPF Account
A. Without UAN (Universal Account Number)
If your account does not have a UAN:
- Visit your nearest EPFO office.
- Apply for a UAN by submitting the required documents, including proof of identity and employment details.
- Once the UAN is issued, link it to your EPF account.
- Complete the KYC (Know Your Customer) process to reactivate the account.
B. With UAN (But Unlinked to EPF Account)
If you have a UAN that is not linked to your EPF account:
- Visit the EPFO office or apply online (if eligible).
- Link your UAN to the EPF account by providing the necessary details.
- Ensure your KYC is updated and verified.
C. Accounts Dormant for Over 3 Years
For accounts inactive for more than three years:
- Visit the EPFO office and submit a reactivation application offline.
- Once verified, your account will be reactivated, allowing you to withdraw funds.
D. Accounts Dormant for Less Than 3 Years
If inactivity is less than three years and your UAN is linked:
- You can apply for reactivation online through the EPFO portal.
- After verification, your account will be reactivated.
Importance of KYC for EPF Account Reactivation
The KYC process is a mandatory step for reactivating your EPF account. This involves verifying:
- Aadhaar: To link your identity to the account.
- PAN Card: For tax compliance, especially if withdrawing funds.
- Bank Account Details: Ensures that withdrawals are credited directly to your account.
Without completing KYC, the reactivation process cannot proceed.
Withdrawing Money from an Inactive EPF Account
Once your account is reactivated, withdrawing funds becomes a straightforward process. Here’s how:
1. Online Withdrawal (For Recently Dormant Accounts)
- Log in to the EPFO Member Portal using your UAN and password.
- Go to the ‘Online Services’ section and select ‘Claim’.
- Fill out the form with details like your reason for withdrawal.
- Submit the application for processing.
2. Offline Withdrawal (For Long-Dormant Accounts)
- Download Form 19 (for final withdrawal) from the EPFO website.
- Submit the filled form at your regional EPFO office along with supporting documents.
- The funds will be transferred to your linked bank account upon verification.
Additional Reasons for EPF Inactivity
Apart from turning 58 or lack of contributions, EPF accounts may also become dormant due to:
- Job changes where the EPF balance is not transferred.
- Switching to organizations that do not contribute to EPF.
- Lack of awareness about account status.
Preventing Inactivity in EPF Accounts
To avoid account inactivity:
- Transfer Balances During Job Changes: Use the UAN to transfer funds seamlessly between accounts.
- Regularly Check Account Status: Monitor contributions and account activity through the EPFO portal.
- Update Personal Details: Keep your KYC and bank details up to date to prevent issues.
Key Highlights of the EPFO Reactivation Process
| Feature | Details |
|---|---|
| Inactive After | No contributions for 3 years |
| Interest Accumulation | Until 58 years (if inactive before age) |
| Reactivation Methods | Online (if inactive <3 years), Offline |
| KYC Requirement | Mandatory for reactivation |
| Withdrawal Timeline | After verification |
EPFO: A Growing Concern with Dormant Accounts
The increasing number of inactive EPF accounts and the rising unclaimed deposits reflect a need for awareness among account holders. Employees must regularly check their EPF accounts, complete KYC processes, and ensure their UAN is linked to avoid issues.
By taking timely action, you can reactivate your EPF account, secure your savings, and ensure easy access to funds when needed.
