Why in news?
The Employees’ Provident Fund Organisation (EPFO) announced an Aadhaar‑based portal called E‑PRAAPTI to help workers trace old provident fund accounts that have become inoperative. The initiative aims to ease the process of retrieving money lying unclaimed in dormant accounts.
Background
An EPF account becomes inoperative when there is no contribution for 36 months after leaving a job. According to official data, more than 31 lakh such accounts hold about ₹10,181 crore in contributions and interest. Many of these accounts pre‑date the Universal Account Number (UAN) system and are linked only to a member ID, making it difficult for workers to locate them.
Key features
- Aadhaar‑based search: Members can log in with their Aadhaar number and find EPF accounts not linked to their UAN. A one‑time password sent to the Aadhaar‑registered mobile number will verify the user’s identity.
- Phased rollout: In the initial phase the portal will allow searches using member IDs. Later phases will integrate Aadhaar and UAN information to automatically map multiple accounts.
- Reduced manual intervention: By automating verification, the portal will minimise paper work and speed up the process of merging inoperative accounts with active ones.
Significance
- Protecting workers’ savings: Millions of workers who changed jobs or migrated abroad often lose track of their provident fund. The portal ensures they can claim their rightful funds.
- Transparency and accountability: Easy access to account details will reduce delays, prevent fraud and restore trust in the EPF system.
- Data consolidation: Linking old accounts to UANs will help the EPFO maintain accurate records and streamline future claim settlements.
Source: The Hindu