Have Unclaimed Money Lying In Old Bank Accounts & Insurance Policies? Take Action Now3 min read

Have Unclaimed Money Lying In Old Bank Accounts & Insurance Policies? Take Action Now3 min read

There are times when many of us put money into a mutual fund or fixed deposit and forget about it. There are instances where a parent or grandparent puts money into a life insurance policy, which family members might either find difficult to access or they may be completely unaware of it. 

Large amounts of bank deposits, insurance policies, and investments have been found to be  unclaimed in India. This is wealth that could help individuals or their family members make fresh investments, fund education, pay off loans or make large purchases that they have been putting off 

According to an estimate by ET Wealth, more than Rs 82,000 crore worth of investors’ funds is lying unclaimed in the form of bank deposits, insurance, provident fund (PF) dues and  investments in mutual funds. Full report here. 

The report, published in July 2021, gives insight into the chunks of money lying across various bank accounts and investments. 

1. Rs 26,497 crore unclaimed in PF accounts (as on March 31, 2019)
2. Rs 18,381 crore lying unclaimed in bank accounts (as on March 31, 2018)
3. Rs 17,880 crore in inactive mutual fund accounts (as on March 31, 2021)
4. Rs 15,167 crore unclaimed with life insurers (as on March 31, 2018)
5. Rs 4,820 crore in matured fixed and other deposits
6. Rs 4,100 crore unclaimed dividends in IEPF (as on March 31, 2020)

The report estimates that even at a 6% interest rate, investors are losing Rs 4,900 crore each year.

These, of course, are large chunks of money and accessing such funds is usually a tedious process that requires a significant amount of paperwork. Often, people also struggle to claim the funds from a deceased family member’s accounts. 

Are you now wondering  how you can access these funds? You’re not the only one. 

Read on to find out some ways you can get hold of the money. 

How can you claim these funds? 

#1. For EPF Account:

If you want to claim money lying in a dormant EPF account, then log in to the EPFO website and go to the Inoperative Helpdesk. Enter the EPF account details and submit KYC information such as Aadhaar number, PAN number, bank account number, and IFSC code. 

#2. For Bank Deposits:

According to RBI regulations, every bank is required to show the details of unclaimed accounts on the bank’s website. You can check the amount using your name and date of birth, PAN, passport number, and phone number. 

You will need to visit the bank branch and submit the claim form, deposit receipts, and know your customer (KYC) documents. 

Do note that if your bank account has not been operational for more than 10 years, then your money will be transferred to the Depositor Education and Awareness Fund (DEAF).

After an account holder has passed away, accessing the bank deposit will be much easier if they’ve named a nominee. If you are a nominee, then you will need to submit proof of identity, deposit receipts and a death certificate of the account holder. 

#3. For Insurance:

The Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for insurers to display details of unclaimed amounts on the websites, if the amount is higher than Rs 1000. So you can check the policy details by using the policy number, PAN of the policyholder, name and date of birth of the policyholder.

The policyholder, their nominee or legal heir can then contact the insurer to get hold of the money. 

#4. For Mutual Funds:

The Securities and Exchange Board of India has made it mandatory for MF houses to provide details of unclaimed funds on their website. Using an investor’s name and PAN number, it is possible to check the amount of money lying in a portfolio. 

Dividends not claimed for more than 7 years are transferred to the Investor Education and Protection Fund Authority (IEPFA). Individuals can access the dividend amount by logging on to the IEPFA website and submit a claim. 

 

Disclaimer: This content is purely for informational purposes and in no way an advice or recommendation. This information is purely based on publicly available data (Data source: ET Wealth, July 6, 2021)