Thousands of crores lie unclaimed; how RBI, SEBI and IRDAI help citizens reclaim it [See measures]

Money left untouched in bank accounts, insurance policies and investments is accumulating across India. Regulators say they are now moving to return it to rightful owners.

The Reserve Bank of India, the Insurance Regulatory and Development Authority of India and the Securities and Exchange Board of India have outlined a series of measures to help citizens reclaim unclaimed financial assets.

As of late February 2026, unclaimed deposits transferred by public sector banks to the Depositor Education and Awareness Fund stood at ₹60,518 crore.

Unclaimed insurance amounts total ₹8,973.89 crore, while unclaimed mutual fund assets are valued at ₹3,749.34 crore.

The update was provided by Minister of State for Finance Pankaj Chaudhary in the Rajya Sabha.

RBI DEA Fund unclaimed deposits and banking sector reforms

Under existing rules, banks transfer balances from accounts that remain inactive for 10 years or more to the Depositor Education and Awareness Fund, managed by the Reserve Bank of India.

These amounts remain a liability of the banks and can still be claimed by depositors or their legal heirs.

To accelerate claim settlements, the central bank has introduced a set of reforms, including consolidated directions under the Responsible Business Conduct Directions, 2025.

An incentive scheme launched on October 1, 2025 offers banks payouts ranging from 5 percent to 7.5 percent of the unclaimed deposit amount, subject to a cap, for successfully resolving claims.

Banks have also been directed to conduct periodic drives to trace depositors, nominees and legal heirs, and to publish lists of unclaimed accounts.

The Banking Laws Amendment Act, 2025 has enabled multiple nominations in bank accounts, allowing up to four nominees in successive or simultaneous formats.

The Indian Banks’ Association has introduced a common application form and standard operating procedures to streamline claims through bank portals.

UDGAM portal and integrated platforms to track unclaimed financial assets

The Reserve Bank of India has launched the Centralised Web Portal UDGAM, which allows users to search for unclaimed deposits across multiple banks in one place.

As of March 1, 2026, the portal had 18.86 lakh registered users, according to the government.

Other regulators have developed similar platforms.

The Insurance Regulatory and Development Authority of India operates the Bima Bharosa portal to help policyholders trace unclaimed insurance proceeds.

The Securities and Exchange Board of India has introduced the MITRA platform for tracking unclaimed mutual fund investments.

An inter regulatory working group has also been set up to develop a unified portal that would allow citizens to search and claim all types of unclaimed financial assets through a single interface.

Nationwide campaign returns thousands of crores to rightful owners

Authorities have also undertaken a nationwide outreach campaign to raise awareness and facilitate claims.

The Department of Financial Services organised the campaign titled “Aapki Poonji Aapka Adhikar” between October and December 2025, in coordination with the three regulators.

Special camps were conducted across 748 districts to assist citizens in filing claims and verifying records.

As of February 28, 2026, financial assets worth ₹5,777 crore linked to 22.95 lakh claims had been returned to rightful owners through these efforts.

Insurance and mutual fund reforms to simplify claims process

The Insurance Regulatory and Development Authority of India has mandated that insurers collect nominee details at the proposal stage and proactively contact customers regarding pending claims.

Insurers have been directed to improve outreach efforts and ensure timely disbursement of unpaid amounts.

The Securities and Exchange Board of India has introduced simplified procedures for transmission of mutual fund investments, including reduced documentation for claims up to ₹5 lakh.

Asset management companies are required to implement image based processing systems to speed up claim handling and maintain dedicated help desks for investors.

The measures across regulators reflect a coordinated push to reduce the stock of unclaimed assets and prevent further accumulation.

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