Most of us are guilty of having various inactive bank accounts that have been relegated to the back of the Spirit, along with the small quantities that are in it. It is the same with dividends that are sent to old addresses, because we have forgotten to inform the registrar and to transfer agents while we hang cities.
Although these amounts can be insignificant for the investor, they correct up to a considerable amount. That is probably the reason why there is a joint step from the RBI, Sebi and other supervisors to make it easier for investors to recover their assets.
These measures can help investors to trace their long forgotten assets, if they wish, but the biggest problem why non-raised assets are high is due to the difficulties related to claiming financial assets of the deceased. Many heirs prefer to simply give up their claims made by the bureaucracy involved. The solution is to be more empathetic in dealing with this process and to live in the problems that seniors are confronted with.
Not –
Although the total value of non -required balances about activa classes is large, it is important that they continue to grow in recent years.
Bank deposits are the preferred -saving choice of most Indian households; And it is therefore not surprising that the biggest non -requested balances are at benches. The outstanding amount in the depositor Education and Awareness (DEA) fund by the end of March 2025 was a huge crore of £ 97,545. The balance has risen by 24 percent compared to the outstanding amount of £ 78,212 in the previous year.
As the share culture grows, not -computered shares and dividends also increase. A parliamentary reaction showed that CRORE £ 8.108 was in the Sebi’s Investor Education and Protection Fund in the Non -Geclaimd dividend, from March 2024. According to Capitaline Database, at least £ 12,000 is held in March 2025 as shares in non -accelerated tension.
Peak in investment funds Investments is also accompanied by increasing non -required balances with fund houses. Not -Certified dividend that layers with investment funds amounted to £ 918 crore towards the end of the FY24, while the non -repair amount was £ 402.8 crore. The insurance policy, IRDAI, has reported that £ 20,062 crore was a non -quoted amount for insurers from March 2024.
The Provident Fund of the employees, another area where savings are merged, did not report -required balances in Non -operation of £ 8,505.23 crore in FY24, an increase of £ 1,638.37 crore in FY19.
The figures listed above contribute to no less than £ 1,47.540 crore. But the list is far from complete. There must be such balances in other investment vehicles such as reit’s, invites, fixed deposits, small savings, etc., which can increase the number of distribution piece.
Regular efforts
A whole series of regulatory measures have been taken in recent years to accelerate the return of this non -quoted balance to investors.
The RBI has determined that the facility for updating the KYC for activating non -operative accounts must be available at all bank branches, identification of customers via video is facilitated and authorized business correspondents can be used to activate non -operative accounts. The UDGAM portal also gives access to all funds that have been transferred to the DEA fund. Banks are also told to release the names of non -disposed deposits on their websites.
Non -raised shares and dividends will be transferred to the Investor Education and Protection Fund if seven years did not claim. And investors can claim their assets via the website.
IRDAI indicates that insurers have to transfer policy amounts that have not been claimed for more than 10 years to Senior Citizens Welfare Fund. The beneficiaries and policyholders then have 25 years to claim the consequences.
Where is the problem?
Despite these legal efforts, non -resource assets continue to set up. Why is it so?
Non -calling balances in banks, stock market and pension funds arise for two important reasons. One, because investors forget to take accounts or to exchange their money and two, assets that are not claimed by heirs about the death of the investor.
The facilities made available by the regulators can help in cases where the investor has been LAKS to take out accounts or inform the RTA about changing the address, etc. Given an increased digitization of financial services and the conquest of almost all annual income by the income tax department, it is pretty likely that divice and never -‘s -office,, divides,, divides, bodies,, institutions,, bodules,, the divined, and notes,,, in -depiling, and no -deskte,, and notly,, the divined accounts.
But there is a real problem in the event of transfer of financial assets of the deceased. Banks need countless documents, including the death certificate, photo and KYC of all legal heirs, disclaimer letter, damage letter, in addition to asking heirs to fill in countless forms.
Many seniors have shares in physical forms and the paperwork that is needed to convert them into Demat forms is so complex that most heirs probably let it go. With many of our Indians who use different versions of our names in different KYC documents, in some cases expand the initials and retain the initials in others, the problems with which legal heirs are confronted have the tendency to worsen.
The way out
There is a need for financial services to treat requests to transfer assets from the deceased with less suspicion and more empathy. They must deal with authorities such as spelling -mermatches in the documents of the deceased (which is very common) or characteristic mismatches, less strictly. This must be communicated to everyone who is on customer service. This could make the heirs more willing to deal with the banks or RTAs to claim their consequences.
Bank accounts, investment fund Folios, insurance and pension accounts can be categorized as high, medium and low risks based on the investor’s profile. For example, if the bank account is the salary account of an employee at a reputable company, it can be classified as a low risk. The KYC procedures, forms to be filled, etc. are less strict in accounts with low risk and vice versa for risky accounts.
The forms that must be completed for the process can be further simplified. A common portal for claiming the financial assets of the deceased can be considered. This portal can be updated about the death of the investor, so that all bills can be frozen. The required documents can be uploaded in one place and are accessible to all RTAs, banks, insurers, MFS, PFRDA, etc. If the aim is to lower the size of non -plainted assets, supervisors must understand that the hardships are confronted by investors and try to outsour and try them out.
Published on July 26, 2025
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