New Delhi: Over Rs.50,000 crore is lying unclaimed with financial institutions such as banks, mutual funds, provident fund, and insurance companies, the Government informed Rajya Sabha on Tuesday.
According to the statistics presented in the Upper House by Finance Minister Nirmala Sitharaman amount of Rs.51,572.74 crore was lying unclaimed by various financial institutions in the country. Citing RBI records she stated the total number of accounts that have not been operated upon for 10 years in scheduled commercial banks as on December 31, 2020 was 8,13,34,849 and total deposits in such accounts was Rs. 24,356 crore.
"Similarly, the number of accounts not operated for more than 10 years and the amount in such accounts with Urban Co-operative Banks (UCBs) was 77,03,819 and Rs. 2,341 crore respectively, as on 31.12.2020," she stated in a written reply.
The Finance Minister further stated that according to information received from the Insurance Regulatory and Development Authority of India (IRDAI), the total amount of unclaimed deposits in Life Insurance Companies as on 31.03.2021 was Rs. 22,043.26 crore, and the total amount of unclaimed deposits in Non-Life Insurance Companies as on 31.03.2021 was Rs. 1,241.81 crore.
"Similarly, as per information received from the Securities and Exchange Board of India (SEBI), as on 31.03.2021, the amount lying unclaimed with Mutual Funds was Rs. 1,590.67 crore which comprised of Rs. 671.88 crores towards unclaimed redemption and Rs. 918.79 crores towards unclaimed dividend," she added.
The Finance Minister said that as per the instructions issued by RBI to banks through their Master Circular on Customer Service in Banks, the banks are required to make an annual review of accounts in which there are no operations for more than one year, and may approach the customers and inform them in writing that there has been no operation in their accounts and ascertain the reasons for it.
"Similarly, IRDAI has mandated that no insurer shall appropriate or write back any part of the unclaimed amounts belonging to the policyholders/ beneficiaries under any circumstances," she added.
