Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (IRDAI), and Securities and Exchange Board of India (SEBI) have intensified measures to help citizens reclaim unclaimed deposits to the tune of Rs 73,241 crore, minister of state for finance Pankaj Chaudhary said on Tuesday.
Substantial pool of unclaimed money continues to sit within India’s financial system, with Public Sector Banks (PSBs) transferring Rs 60,518 crore to the RBI’s Depositor Education and Awareness (DEA) Fund, according to the latest official data. The figure, as of January 31, 2026, highlights the scale of dormant deposits that remain untouched by account holders or their beneficiaries.
Rs 8,973.89 crore worth unclaimed insurance accounts
Unclaimed insurance amounts currently stand at Rs 8,973.89 crore, while mutual funds account for another Rs 3,749.34 crore in unclaimed assets as of late February 2026, Chaudhary said. Together, these numbers point to a persistent challenge in reconnecting rightful owners with their funds.
Regulators have stepped up efforts to address the problem. The central bank has introduced revised guidelines to streamline the settlement of claims, particularly in cases involving deceased depositors. Banks are now being encouraged to proactively identify and contact nominees or legal heirs, alongside publishing lists of unclaimed accounts and conducting awareness campaigns.
A notable change includes allowing multiple nominees in bank accounts, making it easier for families to access funds when needed. Incentives have also been introduced to speed up claim settlements, offering a small percentage payout on recovered deposits within defined limits.
Parallel steps
Insurance and market regulators have taken parallel steps. Insurers are being pushed to improve communication with policyholders, while mutual fund operators have simplified documentation requirements and enhanced digital claim processes.
Despite these measures, officials acknowledge that reducing the growing pile of unclaimed assets will require sustained outreach and greater public awareness, especially in smaller towns and rural areas where financial literacy remains uneven. |
