Over Rs 51K cr unclaimed money lies with FIs

Chennai: Financial institutions hold Rs 51,571 crore as unclaimed amount of customers as of December 2020. The institutions include commercial banks, urban co-operative banks, insurance companies and mutual funds.

As per RBI data, as on December 31, 2020, the total number of accounts which have not been operated for 10 years in scheduled commercial banks was 8.13 crore and the amount of deposits in such accounts was Rs 24,356 crore, finance minister Nirmala Sitharaman informed the Rajya Sabha.

Similarly, the number of accounts not operated for more than 10 years and the amount in such accounts with urban co-operative banks was 77 lakh and Rs 2,341 crore, respectively, till the end of 2020.

As per the Insurance Regulatory and Development Authority of India, the total amount of unclaimed deposits in life insurance companies was Rs 22,043 crore and the total amount of unclaimed deposits in non-life insurance companies was Rs 1,241 crore.

According to the Securities and Exchange Board of India, the amount lying unclaimed with mutual funds was Rs 1,590.67 crore. This comprises Rs 671 crore towards unclaimed redemption and Rs 918 crore towards unclaimed dividend.

The RBI had formed a Depositor Education and Awareness Fund (DEAF) Scheme in 2014. Banks calculate the cumulative balances in all accounts which are inoperative for 10 years or more or any amount remaining un-claimed for 10 years or more, along with interest accrued, and transfer the money to the DEAF.

The DEAF is utilised for promotion of depositors’ interests and similar purposes. In case of demand from a customer whose deposit had been transferred to the DEAF, banks are required to repay the customer, along with interest and lodge a claim for refund from the DEAF.