EPFO Auto Settlement : If your old PF account has remained inactive for a long time and contains a small balance, you may no longer need to file a claim to withdraw the money. The Employees' Provident Fund Organisation (EPFO) has introduced an automatic settlement facility for inactive accounts containing Rs 1,000 or less. Under this initiative, EPFO will identify eligible account holders, verify their bank details and initiate the payment process itself. The move is expected to provide relief to people whose money has remained stuck in old PF accounts.

Money In Inactive Accounts To Be Settled Automatically
On the occasion of its 74th Foundation Day, EPFO introduced a facility to automatically settle small amounts lying in inactive provident fund accounts. Under this arrangement, account holders with a balance of Rs 1,000 or less will receive their money without having to submit a separate claim. However, the facility is not available for all accounts. Only those that meet the prescribed eligibility conditions will benefit.

Aadhaar And Bank Account Verification Mandatory
Under the new system, EPFO will first verify the account holder's identity and bank account details. Once the necessary verification is completed for Aadhaar-authenticated accounts, the payment process will be initiated automatically. This means eligible individuals will not have to submit a separate application or withdrawal claim. Holders of old PF accounts should ensure that their Aadhaar and bank details are accurate and updated.

Around One Lakh Accounts Expected To Benefit
Around one lakh inactive account holders are expected to benefit from this EPFO initiative. These accounts collectively hold approximately Rs 5 crore, which can now be settled. PF accounts often become inactive when employees change jobs or stop contributing to their provident fund for an extended period. As a result, small amounts sometimes remain untouched in these accounts for years. The new arrangement aims to transfer this money to its rightful owners.

Eligibility Conditions For Automatic PF Settlement
To benefit from this facility, the PF account must be inactive and its balance must not exceed Rs 1,000. The account holder's Aadhaar must also be verified. Payment will be processed only after the necessary identity and bank account checks are completed. Therefore, simply having an inactive account does not guarantee automatic settlement. EPFO will proceed based on the account's eligibility and successful verification.

PF Claims Now Settled Within 2.57 Days
EPFO has also reported improvements in the speed of PF claim settlements. According to the organisation, the average time taken to settle claims fell to 2.57 days in October 2026. Technical improvements and the CITES 2.01 initiative have helped make the process faster and easier. As a result, members are spending less time waiting for services related to their provident fund accounts.

PF Account Information Also Available On WhatsApp
EPFO has also announced WhatsApp-based services for its members. Through this facility, members will be able to access their PF account balance, details of their last five transactions and passbook information. Union Labour and Employment Minister Mansukh Mandaviya announced these initiatives during EPFO's 74th Foundation Day celebrations in New Delhi on November 1. According to him, the organisation manages a fund of approximately Rs 32 lakh crore, accumulated through contributions from more than 8 crore members. EPFO provides services to around 8 crore active contributors and 85 lakh pensioners.