Claiming unclaimed funds

RBI'S INCENTIVE-BASED APPROACH MAY SUCCEED IN MINIMISING STOCK AND FLOW TO ITS FUND

- CKG NAIR The writer is a public policy commentator

ON SEPTEMBER 30, the Reserve Bank of India (RBI) took a bold step for reducing the substantial unclaimed deposits and flows in/to its Depositor Education and Awareness (DEA) Fund).

It launched a yearlong (October 1-September 30, 2026) incentive plan (Scheme for Facilitating Accelerated Payout—Inoperative Accounts and Unclaimed Deposits) forbanks. Payments will be in the range of 5-7.5% of the amount in the inoperative/unclaimed account settled, subject to ceiling in the range of ¥5,000-25,000 based on the duration of the account’s non-operation. This unconventional regulatory activism follows a September 26 RBI notification simplifying and harmonising the settlement of deceased persons’ accounts to their nominees or successors.

On October 4, the finance minister launched a nationwide awareness campaign titled “Your Money, Your Right”, emphasising three As—awareness, accessibility, and action—and urging savers/investors to claim their own money aggregating to the tune of $1.84 lakh crore that is lying in specified funds or entities. “Your money, your right” is the right assertion, increasingly being forgotten by money managers (banks, insurance, provident fund, securities), especially as the investors’ money is placed with them ina fiduciary capacity.