The government has succeeded in returning nearly Rs 2,000 crore to rightful owners that had remained stuck as “unclaimed savings” across banks, insurance companies, mutual funds, dividends, shares, and retirement benefit accounts within the regulated financial system, according to an official statement issued on Friday.
The funds were restored through the Centre’s nationwide awareness and facilitation initiative ‘Your Money, Your Right’, launched in October 2025 to help citizens identify and reclaim unclaimed financial assets. The initiative is being coordinated by the Finance Ministry’s Department of Financial Services, with financial sector regulators leveraging digital portals and district-level facilitation mechanisms.
Across generations, Indian families have saved diligently by opening bank accounts, purchasing insurance policies, investing in mutual funds, earning dividends from shares, and setting aside funds for retirement. These financial decisions are often driven by the desire to secure children’s education, meet healthcare needs, and ensure dignity in old age.
However, over time, a substantial portion of these hard-earned savings has remained unclaimed. The money has neither disappeared nor been misused. Instead, it continues to lie safely with regulated financial institutions, disconnected from its rightful owners due to factors such as lack of awareness, outdated records, migration, changes in residence, or missing documentation. In many cases, families are simply unaware that such assets exist.
The scale of unclaimed financial assets in India is significant and spans multiple segments of the formal financial system. Indicative estimates suggest that banks alone hold around Rs 78,000 crore in unclaimed deposits.
Unclaimed insurance policy proceeds are estimated at nearly Rs 14,000 crore, while unclaimed amounts in mutual funds stand at about Rs 3,000 crore. In addition, unclaimed dividends account for roughly Rs 9,000 crore, according to official figures.
Taken together, these figures underscore the magnitude of citizens’ savings that continue to remain unused despite being securely held within the financial system.
‘Your Money, Your Right’ aims to reconnect citizens with these forgotten financial assets and ensure that money belonging to individuals and families is ultimately returned to them.
Unclaimed financial assets typically arise when funds held with financial institutions are not claimed by account holders or their legal heirs for a prolonged period. These include bank deposits—such as savings, current, fixed, and recurring accounts—that have not been operated for ten years or more; unpaid insurance policy proceeds; mutual fund redemption proceeds or dividends that could not be credited due to issues such as account closure or incomplete bank details; unclaimed dividends and shares transferred to statutory authorities; and pension or retirement benefits that remain unclaimed.
In most cases, assets become unclaimed due to 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.
To facilitate recovery, 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). These agencies are working together to help citizens identify, access, and reclaim financial assets through simplified and transparent processes.
— IANS
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