The Centre has informed that the total amount of unclaimed deposits lying with the Life Insurance Corporation (LIC) and the amount in inoperative PF accounts maintained by the Employees’ Provident Fund Organisaton (EPFO) stand at around Rs 16,650 crore in total.
The EPFO does not officially classify any EPF account as “unclaimed.” Instead, such accounts are treated as inoperative accounts.
Replying to a written question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that ₹9,330.56 crore was lying in inoperative EPF accounts as on March 31, 2026. The clarification came in response to questions raised by MP Dr. M K Vishnu Prasad on the amount of unclaimed money lying with LIC and EPFO and the steps being taken to return it to rightful beneficiaries.
No ‘unclaimed’ EPF accounts, only inoperative accounts
The government clarified that, as informed by the Ministry of Labour and Employment, there are no unclaimed EPF accounts.
Instead, “certain accounts are classified as inoperative accounts” under the EPF Scheme. According to the reply, the total amount lying in these inoperative accounts stood at ₹9,330.56 crore as of March 31, 2026.
This distinction is important because EPFO does not maintain a separate category of “unclaimed” accounts, unlike some other financial institutions.
What is EPFO doing to return the money?
The government said EPFO has taken several steps to help members receive the money lying in inoperative accounts.
One of the key initiatives is a pilot project for automatic claim settlement in Aadhaar-verified inoperative EPF accounts with balances of ₹1,000 or less.
Under this project, the amount is being credited directly to the member’s Aadhaar-linked bank account without requiring a fresh claim or additional documents. According to the government, this is meant to simplify the process and help members receive their dues faster.
The reply added that the pilot is currently underway and, after due diligence, may be expanded to accounts with higher balances in future.
Apart from this, EPFO has also identified and categorised inoperative accounts based on the availability of KYC details. It is also conducting awareness campaigns through social media and organising Nidhi Aapke Nikat (NAN) 2.0 camps to educate employers and employees about EPF services and money lying in inoperative accounts.
Any plan to use these funds for other purposes?
The government said there is currently no proposal to use the money lying in inoperative EPF accounts for any other purpose.
“As informed by the Ministry of Labour and Employment, at present there is no proposal for utilisation of these funds for any other purposes,” the written reply stated.
LIC’s unclaimed amount crosses ₹7,300 crore
The government also shared data on unclaimed money with the Life Insurance Corporation of India (LIC).
As on March 31, 2026, LIC had ₹5,564.55 crore of unclaimed policyholder money and ₹1,753.95 crore as income accrued on these amounts, taking the total to ₹7,318.50 crore.
The reply said LIC has been taking multiple steps to trace policyholders and beneficiaries. These include online search facilities, SMS reminders, letters, help from local agents, awareness campaigns and the use of credit bureau services to locate customers.
The government also noted that, under IRDAI rules, unclaimed insurance amounts that remain unclaimed for more than 10 years are transferred to the Senior Citizen Welfare Fund (SCWF). However, this provision does not apply to EPFO’s inoperative account balances, for which the government said there is no proposal to divert the funds elsewhere.