₹73,000 Crore+ in Unclaimed Financial Assets: Govt Steps Up Drive to Reunite Citizens with Their Money

The data, shared in the Rajya Sabha by Minister of State for Finance Shri Pankaj Chaudhary, highlights both the scale of the issue and the growing push toward technology-driven, citizen-centric financial recovery systems.

India is sitting on a staggering pool of over ₹73,000 crore in unclaimed financial assets, spanning bank deposits, insurance, and mutual funds, prompting regulators and the government to intensify efforts to return money to rightful owners and streamline claim processes.

The data, shared in the Rajya Sabha by Minister of State for Finance Shri Pankaj Chaudhary, highlights both the scale of the issue and the growing push toward technology-driven, citizen-centric financial recovery systems.

Massive Pool of Unclaimed Funds Across Financial Sectors

According to the latest figures:

• ₹60,518 crore — Unclaimed deposits transferred by Public Sector Banks (PSBs) to RBI’s Depositor Education and Awareness (DEA) Fund (as of January 31, 2026)

• ₹8,973.89 crore — Unclaimed insurance amounts with insurers (as of February 28, 2026)

• ₹3,749.34 crore — Unclaimed mutual fund investments under SEBI regulations (as of February 28, 2026)

These figures underline a systemic challenge in financial asset tracking, often arising due to inactive accounts, lack of nominee details, or unawareness among beneficiaries.

₹5,777 Crore Returned Through Nationwide Campaign

In a major recovery effort, the Department of Financial Services (DFS), in coordination with RBI, SEBI, and IRDAI, launched the nationwide campaign:

“आपकी पूँजी, आपका अधिकार – Your Money, Your Right”

Key outcomes of the campaign (October–December 2025):

• ₹5,777 crore restored to rightful owners

• 22.95 lakh claims settled

• Special camps conducted in 748 districts across India

The campaign marked one of the largest coordinated financial awareness and restitution drives in the country.

RBI’s New Incentive Scheme and Simplified Claim Rules

To accelerate claim settlements, the Reserve Bank of India (RBI) has introduced several reforms:

• Incentive Scheme (effective October 1, 2025):

  • Banks receive 5%–7.5% incentive payouts (subject to cap) for successfully settling unclaimed deposits

• Responsible Business Conduct Directions, 2025:

  • Consolidated guidelines for claim settlement, especially for deceased depositors

• Banking Laws (Amendment) Act, 2025:

  • Allows up to four nominations (simultaneous or successive), reducing legal complexities

• Mandatory actions for banks:

  • Periodic drives to trace depositors/nominees

  • Public disclosure of unclaimed deposits

  • Awareness campaigns

Additionally, the Indian Banks’ Association (IBA) has introduced a Common Application Form and SOP via bank portals to standardize and simplify claims.

Digital Platforms Transforming Access to Unclaimed Assets

A major innovation in the ecosystem is the creation of centralised digital search platforms:

• UDGAM Portal (RBI):

  • Enables users to search unclaimed bank deposits across multiple banks

  • 18.86 lakh registered users as of March 1, 2026

• Bima Bharosa Portal (IRDAI):

  • Helps trace unclaimed insurance proceeds

• MITRA Platform (SEBI):

  • Facilitates tracking of unclaimed mutual fund investments

In a significant upcoming reform, RBI has also constituted an Inter-Regulatory Working Group to develop a single integrated portal, aiming to provide a one-stop solution for all unclaimed financial assets.

Insurance Sector: Proactive Outreach and Mandatory Nomination

The Insurance Regulatory and Development Authority of India (IRDAI) has strengthened preventive mechanisms:

• Mandatory collection of proposer and nominee details at policy inception

• Insurers directed to:

  • Send advance alerts for pending claims

  • Actively trace beneficiaries

  • Improve claim disbursement efficiency

• Public resources available:

  • SOPs, FAQs, and awareness videos on IRDAI website

Mutual Funds: Faster Claims with Simplified Processes

The Securities and Exchange Board of India (SEBI) has introduced reforms to ease claim settlement:

• Simplified documentation for claims up to ₹5 lakh

• Promotion of nomination in mutual fund investments

• Image-based claim processing to reduce turnaround time

• Mandatory:

  • Dedicated help desks

  • Investor support webpages by Asset Management Companies (AMCs)

Why Funds Become Unclaimed

Financial assets typically become unclaimed due to:

• Accounts inactive for 10 years or more (transferred to DEA Fund)

• Lack of nominee details

• Death of account holders without claim initiation

• Poor awareness among legal heirs

Under the DEA Fund Scheme, 2014, such deposits are transferred to RBI but remain claimable at any time, forming part of banks’ contingent liabilities.

Strategic Shift: From Passive Custody to Active Recovery

The government and regulators are now moving toward a proactive recovery model, combining:

• Digital platforms

• Incentivised claim settlement

• Nationwide awareness drives

• Regulatory simplification

Key Takeaways

• Over ₹73,000 crore remains unclaimed across financial sectors

• Strong push for technology-driven tracking and claims

• ₹5,777 crore already returned through targeted campaigns

• Upcoming single integrated portal to unify access

The evolving framework signals a shift toward financial inclusion and accountability, ensuring that citizens can reclaim what is rightfully theirs with greater ease and transparency.