The Minister of State for Finance, Shri Pankaj Chaudhary, detailed a coordinated multi-regulator effort in Rajya Sabha today, to help citizens reclaim unclaimed financial assets across banks, insurance, and mutual funds.
As of early 2026, unclaimed amounts in Public Sector Banks alone reached ₹60,518 crore, with an additional ₹8,973.89 crore in insurance and ₹3,749.34 crore in mutual funds. A nationwide campaign titled “आपकी पँजूी, आपका अधिकार – Your Money, Your Right,” conducted between October and December 2025, successfully returned ₹5,777 croreacross 22.95 lakh claims.
To sustain this momentum, the RBI has institutionalised an incentive scheme providing a 5%–7.5% payout for successful claim settlements, while the Banking Laws (Amendment) Act, 2025, now enables up to four simultaneous or successive nominations per account. Furthermore, an Inter-Regulatory Working Group is currently developing a single integrated web portal to centralise the search and recovery of all unclaimed financial assets.
Key Regulatory Measures and Digital Infrastructure
Banking Sector Reforms: Banks are mandated to transfer balances inactive for 10 years or more to the DEA Fund, though these remain a contingent liability for the respective banks to facilitate future claims.
Digital Search Portals: The UDGAM portal for bank deposits has recorded 18.86 lakh registered users, complemented by IRDAI’s Bima Bharosa and SEBI’s MITRA platforms for insurance and mutual fund assets.
Simplified Documentation: SEBI has simplified claim procedures for mutual fund transmissions up to ₹5 lakh and mandated image-based processing to reduce turnaround times.
Proactive Outreach: Insurers are now required to collect nominee details at the proposal stage and send advance intimations to customers regarding due claims.
Incentive Framework: Effective from 1 October 2025, the RBI provides a capped payout to banks for successful settlements to encourage periodic drives to trace legal heirs.
What is the "DEA Fund"? The Depositor Education and Awareness (DEA) Fund is a facility established by the RBI where banks transfer credit balances from accounts that have remained inoperative for 10 years or more. It acts as a catalyst for protecting consumer interests by ensuring that idle funds are utilized for depositor awareness and education while remaining available for claim by the rightful owner at any time. The transfer to this fund manifests as a transition from an "active" account to a "contingent liability" on the bank's off-balance sheet, ensuring the financial obligation to the depositor persists. Accessing these funds is a primary lever for financial justice, supported by the UDGAM portal which streamlines the search process across multiple banking institutions.
Policy Relevance: Enhancing Financial Inclusion and Household Wealth
Institutionalizes a Framework for Legacy Planning: Enabling multiple nominations (up to four) benchmarks a trajectory toward modernizing inheritance laws in banking, reducing the legal hurdles often faced by multiple heirs.
Mechanically Bridges the Informational Gap: The creation of an Integrated Web Portal signals a paradigm shift in financial transparency, allowing citizens to search across disparate asset classes through a single interface.
De-risks the Environment for Small Investors: Simplified documentation for claims up to ₹5 lakh serves as a cornerstone for protecting middle-class household assets, ensuring that small savings are not lost to bureaucratic complexity.
Signals a Paradigm Shift in Regulatory Incentives: Providing a 5%–7.5% payout for successful settlements benchmarks a shift where regulators incentivize banks to actively "offboard" unclaimed debt rather than passively holding it.
Future-proofs Digital Trust: Mandating image-based processing for claims streamlines the delivery of funds while adhering to the digital governance standards seen in recent Secretariat reforms.
Relevant Question for Policy Stakeholders
Metric Fidelity: How will the Ministry of Finance mechanically evaluate the success of the 5%–7.5% incentive scheme in reducing the ₹60,518 crore currently held in the DEA Fund?
Implementation Mechanics: What specific data-sharing protocols will the Inter-Regulatory Working Groupinstitutionalize to ensure that a search on the "single integrated portal" is both real-time and secure?
Governance Metrics: In what ways can the government utilize district-level campaign data to mechanically identify regions with the highest density of unclaimed assets for targeted awareness drives?
Operational Alignment: How does the mandate to collect nominee details at the "proposal stage" in insurance mechanically align with the Aadhaar-based KYC standards being adopted across the broader financial sector?
Follow the Full Coverage Here: RBI, IRDAI and SEBI Intensify Measures to Help Citizens Reclaim Unclaimed Deposits
