21 lakh EPF accounts inactive, ₹8,500 crore lying in them: What government told Rajya Sabha

More than 21 lakh Employees' Provident Fund (EPF) accounts were classified as inoperative in 2023-24, with a balance of ₹8,505.23 crore, the government informed the Rajya Sabha on August 13.

The issue was raised by Neeraj Dangi, who asked the Minister of Labour and Employment about the number of inoperative EPF accounts and the amount lying in them from 2020-21 onwards, claims settled, reasons for the increase in such accounts and the steps being taken to help members claim their money.

Minister of State for Labour and Employment Sushri Shobha Karandlaje gave the reply.

What did the government say about inoperative EPF accounts?

In response to the question, the government said the financial year-wise number of inoperative accounts, the amount lying in them and the amount of claims settled are based on EPFO's Consolidated Annual Accounts.

The number of inoperative accounts increased from 11,72,923 in 2020-21 to 13,41,848 in 2021-22, 17,44,518 in 2022-23 and 21,55,387 in 2023-24.

The balance in these accounts also increased from ₹3,930.85 crore in 2020-21 to ₹8,505.23 crore in 2023-24.

Why are EPF accounts becoming inoperative?

The government said the primary reason for the increase is “the non-filing of claims by the members after exiting service.”

It also pointed to the KYC updation drive involving Aadhaar seeding. According to the government, accounts that had not previously been classified as inoperative because members' dates of birth were unavailable have now been categorised as inoperative.

New EPF Scheme has provision for auto-initiation of claims

The government said it has taken measures to identify and categorise inoperative EPF accounts with unclaimed accumulations based on the availability and status of KYC details.

EPF inoperative accounts: Year-wise data

The government provided the information in response to Rajya Sabha Unstarred Question No. 2972 on August 13, 2026.