Govt's Unclaimed Money Campaign Helps Return Rs 2000 Crore To Owners
This amount was stuck as "unclaimed savings" across banks, insurance, mutual funds, dividends, shares, and retirement benefits held within the regulated financial system
Mumbai: The government's "Your Money, Your Right" initiative launched in October has helped in returning Rs 2000 crore of unclaimed monies to their rightful owners, according to a government statement issued on Friday.
This amount was stuck as "unclaimed savings" across banks, insurance, mutual funds, dividends, shares, and retirement benefits held within the regulated financial system.
The scale of unclaimed financial assets in India is quite large. Indicative estimates show that there are around Rs 78,000 crore of unclaimed deposits in Indian banks. Unclaimed insurance policy proceeds are around Rs 14,000 crore, while this amount is around Rs 3,000 crore in mutual funds. Apart from this, the figure of unclaimed dividends is said to be around Rs 9,000 crore.
These unclaimed financial assets arise when money held with financial institutions is not claimed by the account holder or their legal heirs for a prolonged period. Such assets include:
*Bank deposits such as savings accounts, current accounts, fixed deposits, and recurring deposits that have not been operated for ten years or more.
*Insurance policy proceeds that remain unpaid beyond the due date
*Mutual fund redemption proceeds or dividends that could not be credited due to reasons such as a change in bank account, bank account closure, incomplete bank account in records, etc.
*Dividends and shares that remain unclaimed and are transferred to statutory authorities
*Pension and retirement benefits that are not claimed within the normal course
In most cases, assets may become unclaimed because of routine life events such as migration for work, changes in contact details, closure of old bank accounts, or lack of information among family members and legal heirs.
The Government is coordinating with the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), the Securities and Exchange Board of India (SEBI), the Investor Education and Protection Fund Authority (IEPFA), and the Pension Fund Regulatory and Development Authority (PFRDA) to help citizens identify, access and reclaim financial assets that legally belong to them, using simple processes and transparent systems under the "Your Money, Your Right" initiative.
