New Delhi, Mar 25 (KNN) Unclaimed financial assets across banks, insurance companies and mutual funds have crossed Rs 73,000 crore, prompting regulators to intensify efforts to help citizens trace and recover their funds, the government informed the Rajya Sabha.
According to Minister of State (MoS) for Finance Pankaj Chaudhary, unclaimed deposits with public sector banks in the RBI’s DEA Fund stood at Rs 60,518 crore as of January 31, 2026. Unclaimed funds with insurers totalled Rs 8,973.89 crore, while mutual funds accounted for Rs 3,749.34 crore as of February 28, 2026.
Measures to simplify claims and reduce backlog
In written reply to a question in Parliament, the MoS Finance said that financial regulators have introduced a series of measures to identify rightful claimants and streamline the claims process.
The RBI has issued consolidated guidelines under the Responsible Business Conduct Directions, 2025 and introduced an incentive scheme offering 5–7.5 percent payouts (subject to a cap) for successful recovery of unclaimed deposits.
Banks have also been directed to run periodic drives to trace depositors and heirs, publish unclaimed deposit lists and strengthen awareness efforts.
Further, amendments under the Banking Laws (Amendment) Act, 2025 now allow up to four nominations per bank account, improving succession clarity.
The Indian Banks’ Association has also introduced a common application form and standard operating procedures to make claim settlement more efficient.
Insurance and mutual fund reforms
IRDAI has directed insurers to collect nominee details at the proposal stage and proactively contact policyholders about pending claims.
Insurers have also been advised to strengthen communication and tracing efforts, supported by SOPs, FAQs and awareness initiatives.
SEBI has eased mutual fund transmission norms by reducing documentation for claims up to Rs 5 lakh, requiring AMCs to set up dedicated help desks and webpages, and introducing image-based processing to speed up settlements.
Nationwide campaign and digital platforms
To accelerate recovery of unclaimed assets, the Department of Financial Services conducted a nationwide campaign titled ‘Your Money, Your Right’ between October and December 2025.
During this period, camps were organised across 748 districts, resulting in the return of Rs 5,777 crore to rightful owners and settlement of 22.95 lakh claims.
The RBI’s UDGAM portal allows users to search unclaimed deposits across banks, with 18.86 lakh registered users as of March 1, 2026.
Similarly, IRDAI’s Bima Bharosa and SEBI’s MITRA platforms help track unclaimed insurance and mutual fund assets, with plans underway for a unified portal across regulators.
Under the DEA Fund Scheme, 2014, bank deposits that remain inactive for 10 years are transferred to the RBI-managed fund, although they continue to remain payable to depositors or their legal heirs.
(KNN Bureau)
2012-01-26
