New Delhi, February 11: The Employees’ Provident Fund Organisation has issued fresh clarifications on how inoperative EPF accounts are treated, when interest stops accruing and how members can regain access to dormant funds. The updated Standard Operating Procedures released in 2024 outline specific conditions under which accounts stop earning interest and the steps required to reactivate them.

When Does an EPF Account Become Inoperative

Under current rules, an EPF account is generally classified as inoperative if it remains without transactions for 36 months after retirement or permanent migration abroad. However, for most active employees below the age of 58, interest continues to be credited annually even if monthly contributions have stopped.

As per EPFO guidelines, an account usually stops earning interest once a member turns 58. Until that age, balances continue to earn interest regardless of contribution gaps, provided the member remains an Indian resident. EPFO 3.0 Set for Rollout With UPI Withdrawals and User-Friendly PF Services.

Key Scenarios Where Interest Stops

The 36 month rule applies in specific situations:

After Retirement

Members who retire at 55 have a three year window to withdraw or transfer their funds. If the account remains untouched and the member reaches 58, interest stops accruing.

Permanent Migration Abroad

If a member settles outside India and does not claim the balance within 36 months, the account is marked inoperative and stops earning interest. EPFO Member Passbook Guide 2026: Know Steps To Access and Download Your Member Passbook Online via Portal and UMANG App.

In Case of Death

If legal heirs fail to claim the funds within 36 months of the member’s death, the account becomes inoperative and interest is discontinued.

For younger employees who switch jobs or take career breaks, the account continues to earn interest until the age of 58.

Stricter Checks for Dormant Accounts

To curb fraud and identity misuse, the EPFO has strengthened due diligence measures for transaction less accounts. Accounts with no activity other than annual interest credit for three years are flagged for additional verification.

Withdrawal or transfer requests from such accounts may require enhanced scrutiny of KYC documents by the concerned field office to ensure funds are released to the rightful claimant.

How to Reactivate an Inoperative EPF Account

Reviving a dormant EPF account is largely a digital process. Members need to complete the following steps:

Activate UAN

Ensure the Universal Account Number is active. If forgotten, it can be retrieved using the Know Your UAN facility on the EPFO portal.

Update KYC Details

Link Aadhaar, PAN and current bank account details with the UAN. KYC seeding is mandatory for processing claims.

Raise an Online Request

Log in to the Unified Member Portal and submit a request through the inoperative account assistance section.

Employer or Office Verification

If the account has been inactive for less than three years, approval is usually routed to the last employer. If the establishment has closed, members must approach the Regional PF Office.

Transfer or Withdraw: What Is Better

Experts generally advise transferring funds from an old account to an active UAN instead of withdrawing. A transfer preserves continuity of service, which is crucial for pension eligibility and tax free withdrawals after five years of continuous service.

In cases where an account has been inactive for more than seven years, additional documentation may be required to satisfy enhanced verification norms before withdrawal is processed.

With clearer rules and digital access, EPFO members are encouraged to regularly monitor their accounts and ensure KYC details remain updated to avoid their savings turning inoperative.

(The above story first appeared on LatestLY on Feb 11, 2026 01:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).