The labour ministry has initiated a process to return unclaimed funds lying in inoperative Employees’ Provident Fund Organisation (EPFO) accounts to subscribers, a move expected to benefit over 3.1 million account holders, labour minister Mansukh Mandaviya said.A pilot phase covering about 0.7 million subscribers will be rolled out shortly after the decision was taken during a weekly review meeting chaired by the minister, according to an ET report.EPFO currently has around 31.86 lakh inoperative accounts holding deposits worth Rs 10,903 crore. Nearly 7.11 lakh of these accounts contain unclaimed balances of up to Rs 1,000, totalling Rs 30.52 crore.The ministry said several accounts are as old as 20 years and have recorded no transactions for the past three years, leading to their classification as inoperative.Accounts selected for the pilot phase already have Aadhaar-linked bank details available with EPFO, enabling the retirement fund body to directly credit the pending amounts to subscribers.Under provisions of the EPF & MP Act, beneficiaries must file claims to withdraw their provident fund savings. However, authorities observed that in many cases the balance amount is too small compared with the documentation required, resulting in a buildup of unclaimed deposits over time.

Scholarship scheme to be strengthened

Alongside the payout initiative, the labour ministry said its education assistance programme for children of unorganised workers will now include a merit-based scholarship of up to Rs 25,000 in addition to the existing welfare-based support.“In order to enhance equity, remove unintended exclusions and ensure policy clarity, the ministry is amending the scheme guidelines to allow a student who is availing the ministry’s welfare-based scholarship to also receive a merit-based scholarship from any central or state government agency, wherever eligible,” the labour ministry said in a statement.The ministry said about 0.16 million students have so far received welfare-based financial assistance amounting to Rs 77.9 crore this year, compared with 92,118 beneficiaries who received Rs 31.65 crore in 2024-25.According to the ministry, the initiative aligns with the Code on Social Security, 2020, which seeks to expand social security and welfare measures, including education support, for unorganised workers and their families.

The equity market came under heavy pressure on Monday, with investors remaining cautious amid escalating tensions between the United States and Iran, while the start of the roll-over period added to volatility.

The benchmark Pakistan Stock Exchange (PSX) KSE-100 Index closed at 167,691.08 points, falling 5,478.63 points or 3.16% from the previous session’s close of 173,169.71.

During intraday trading, the index touched a high of 174,336.85 before sliding to a low of 166,886.63, reflecting sharp swings throughout the session.

Market analysts attributed the decline to geopolitical uncertainty. Huzaifa Riaz, Director at Mayari Securities, said investors adopted a cautious stance due to rising US-Iran tensions and the absence of strong near-term market triggers.

US President Donald Trump recently stated he would decide within “10 to 15 days” whether to order strikes on Iran if nuclear negotiations fail.

Reports indicated that military options were presented to him, including potential actions targeting Iran’s leadership.

On the economic front, data from the State Bank of Pakistan (SBP) showed that profit and dividend repatriation by foreign investors rose to $1.677 billion during the first seven months of FY26, compared to $1.328 billion a year earlier.

Pakistan recorded a current account surplus of $121 million in January, supported by strong remittances and controlled imports.

However, the cumulative current account balance showed a deficit of $1.07 billion in 7MFY26, compared to a $564 million surplus in the same period last year.

Meanwhile, weekly inflation measured by the Sensitive Price Indicator (SPI) rose 1.16% for the week ended February 19, according to the Pakistan Bureau of Statistics (PBS), with year-on-year inflation recorded at 5.19%.

The previous session had seen the KSE-100 gain nearly 1,000 points, but Monday’s sharp sell-off reversed those gains as geopolitical concerns dominated investor sentiment.

Last Updated:February 23, 2026, 13:07 IST

RBI Governor Sanjay Malhotra confirmed no systemic risk from the Rs 590 crore fraud at IDFC First Bank’s Chandigarh branch linked to Haryana government accounts.

RBI Monitoring Rs 590 Crore Fraud At IDFC First Bank, Assures No Wider Impact

The Reserve Bank of India (RBI) is closely monitoring developments surrounding the Rs 590 crore fraud reported by IDFC First Bank, with no broader systemic concern arising from the incident, said Governor Sanjay Malhotra told reporters during a press briefing held after the customary post-Budget address by Finance Minister Nirmala Sitharaman to the RBI’s Central Board of Directors.

“We are watching the development, there is no systemic issue,” Malhotra said, after being asked upon IDFC First Bank’s fraud case, in which the private lender has reported a fraud of Rs 590 crore with an account linked with the Haryana government at the Chandigarh branch.

The irregularities were linked to a defined set of Haryana state government accounts handled at that branch. The Haryana government has de-empaneled IDFC First Bank and AU Small Finance Bank with immediate effect.

Following the update, the bank’s shares crashed 20 per cent on Monday, bearing a heavy loss.

Bank Assures Limited Impact

IDFC First Bank clarified in its disclosure that the fraud is “confined to a specific group of government-linked accounts within Haryana government” operated through the Chandigarh branch. The bank emphasized that the issue does not extend to other customers serviced by the same branch.

The lender’s statement sought to reassure stakeholders that the matter is restricted in scope and does not reflect a wider operational breakdown. The RBI’s remarks further underlined that, from a regulatory standpoint, the episode does not pose systemic risks to the banking sector.

The development comes amid heightened regulatory focus on governance standards and internal controls within financial institutions. While investigations and internal reviews are expected to continue, the central bank’s position signals confidence that the broader banking system remains stable.

(With PTI Inputs)

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