Unclaimed Funds and Green Bonds: A Financial Sector Update

Public sector banks have transferred Rs 60,518 crore to the DEA Fund, while insurers hold Rs 8,973.89 crore in unclaimed amounts. Financial measures aim to expedite claims. Sovereign Green Bonds show robust investor interest with no tax incentives planned, maintaining a strong bid-cover ratio of 2.32.

Public sector banks have transferred a substantial Rs 60,518 crore to the Reserve Bank of India's Depositor Education and Awareness Fund as of January 2026, as reported to the Rajya Sabha.

Further, the outstanding unclaimed amounts with insurers stood at Rs 8,973.89 crore by February-end. Unclaimed mutual fund amounts under SEBI regulations amount to Rs 3,749.34 crore, Minister of State for Finance Pankaj Chaudhary revealed in a written response.

He also highlighted that investor interest in Sovereign Green Bonds remains robust, with an average bid-cover ratio above 2 since FY 2022-23. Investors recently offered a 7 basis point greenium, indicating continued attractiveness despite a lack of tax incentives.

(With inputs from agencies.)