Unclaimed Money in India — how to avoid losing money

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Unclaimed Money in India — What it is, how big the problem is, how to find & claim your funds, and how to avoid losing money

Millions of people in India have small — and sometimes large — sums sitting unclaimed across banks, mutual funds, insurance companies, provident/pension accounts and other financial institutions. This article explains what “unclaimed money” means in India today, how big the pool is, the official mechanisms to find and reclaim it.

How much unclaimed money exists

In India:

  • As of mid-2025, more than ₹67,000 crore (over 670 billion rupees) is reported to be lying in banks as unclaimed deposits. Navbharat Times
  • In mutual funds, SEBI reports that in financial year 2024-25, about ₹3,452 crore of dividends/redemptions remained unclaimed. The Times of India
  • The RBI’s “Your Money, Your Right” campaign aims to return ₹1.84 lakh crore of unclaimed financial assets held across various institutions (banks, insurance, mutual funds, provident funds etc.). The Times of India

So it’s a huge amount overall, spread across many institutions.

Step-by-step claiming guidance, and practical habits to prevent your money from becoming “unclaimed” in the first place.

1) What “unclaimed money” means in India

“Unclaimed money” (also called unclaimed deposits, dormant balances or inoperative accounts) covers any financial asset that has not been accessed or claimed by its rightful owner for a long time. Typical examples:

  • Savings/current accounts or fixed deposits with no transactions for many years.
  • Dividends or redemption proceeds from mutual funds that were not credited/claimed.
  • Insurance payouts, matured policy proceeds or unpaid refunds.
  • Provident Fund / pension amounts that were never withdrawn/claimed.
  • Shares, debentures or corporate payouts (dividends) not collected by the investor.

Rules differ by type of instrument and regulator, but banks commonly classify deposits as “inoperative/unclaimed” after 10 years of inactivity and must report/transfer these to the RBI-administered Depositor Education & Awareness (DEA/DEAF) Fund (see Section 4 below for details). Moneycontrol

2) How large is the problem? (the scale)

Recent government/regulatory coverage and reports show this is a substantial national issue:

  • The Union government launched a major awareness drive in October 2025 to return roughly ₹1.84 lakh crore of unclaimed financial assets held across banks, insurance companies, mutual funds, provident funds and other institutions. The Times of India
  • Indian banks alone hold about ₹67,000 crore in unclaimed bank deposits (reported mid-2025). The Indian Express
  • Unclaimed amounts in mutual funds (dividends + redemptions lying with AMCs) rose to around ₹3,452 crore in FY 2024–25 (an increase of ~20–21% year-on-year). The Economic Times

Put simply: hundreds of thousands of crores of rupees across multiple financial sectors remain unclaimed, which is why regulators and the government have been pushing large awareness and outreach drives. The Economic Times

3) What happens to unclaimed money (process & custodianship)
  • Banks: If a deposit account remains inoperative for 10 continuous years, banks transfer the full balance (including accrued interest) to the RBI’s Depositor Education & Awareness Fund (DEAF/DEA Fund). The depositor (or nominee/legal heir) can still claim this money — banks will settle claims and then claim reimbursement from the DEA Fund. There is no extinguishing time limit — funds can be claimed even after transfer. Reserve Bank of India
  • Mutual funds: Unclaimed dividends/redemptions are held with the Asset Management Companies (AMCs). SEBI monitors reporting and requires AMCs to make reasonable efforts to contact investors. Unclaimed amounts remain recoverable by investors/nominees. The Economic Times
  • Insurance / EPF / Pensions / Others: These sectors have their own rules and portals — for example, insurance companies have claim procedures; EPFO/CPF maintain records and allow claims by members or heirs. Regulators often publish lists/reports and run awareness campaigns. Moneycontrol
4) Where to search for unclaimed money — official portals & tools

Start with the regulator portals and official search tools:

  1. UDGAM (RBI’s Unclaimed Deposits portal) — search unclaimed bank deposits across participating banks using name, PAN/Aadhaar, etc. It’s RBI’s central gateway to locate unclaimed bank balances transferred to DEA/DEAF. More than 8 lakh people have reclaimed deposits via UDGAM in recent outreach. Reserve Bank of India
  2. Mutual Funds (AMCs / CAMS / Karvy / KFintech portals) — check with the AMC or registrars for any unclaimed dividends/redemptions; SEBI’s annual reports also highlight unclaimed MF amounts. The Economic Times
  3. Insurance companies / IRDAI guidance — check insurer customer service and IRDAI portals for matured/unpaid policy proceeds or claims. Hindustan Times
  4. EPFO / NPS / PF portals — provident fund and pension account statements are accessible online; dormant or exited-member amounts may be traceable via UAN/PRAN. (Check the relevant portal.)
  5. Company share registrars / MCA / stock transfer agents — if company dividends remain unclaimed, registrars (e.g., KFintech/CAMS) hold records.

If you can’t find something online, approach the last-known branch/issuer with identity and account details — banks & institutions have procedures to verify and release funds.

5) How to claim — step-by-step (practical checklist)

A. For bank unclaimed deposits (via UDGAM / bank):

  1. Visit the RBI UDGAM portal and search by name, account number, PAN, or Aadhaar (if available). Note down the bank, branch and Unclaimed Deposit Reference Number (UDRN) if shown. Reserve Bank of India
  2. Contact the bank branch (or the bank’s nodal officer) listed in the portal with identity proof (Aadhaar/PAN/Passport), address proof, and any account documents (passbook, old statements, cheque leaf, FD receipt).
  3. Fill bank’s claim form for inoperative/unclaimed deposit; submit KYC documents and a declaration. If the depositor is deceased, nominee/legal heirs must submit succession/guardianship documents (will, succession certificate, probate or legal heir certificate) as required. State Bank of India
  4. Bank will verify and either re-credit the account or pay out. If the account was transferred to the DEA Fund and the bank has reimbursed, bank will settle the claim and claim reimbursement from DEA later. Reserve Bank of India

B. For mutual funds:

  1. Check your Folio/ARN and KYC; search AMC registrars (CAMS/KFintech) for unclaimed dividends/redemptions. The Economic Times
  2. Contact the AMC’s investor-service desk with PAN, KYC and proof of identity to initiate claim.

C. For insurance claims:

  1. Approach the insurer with policy number, identity, and death certificate (if applicable). Most insurers have defined claim timelines and grievance redressal. Hindustan Times

Documents typically required: Photo ID (Aadhaar/PAN/Passport/Driving licence), proof of address, account passbook/statements, cancelled cheque (for bank account verification), nomination / succession documents if depositor deceased, and any old policy / deposit receipts.

6) Practical tips to avoid your money becoming unclaimed (actionable habits)
  1. Keep contact details & KYC up to date with every bank, AMC, insurer and PF/NPS provider. If your phone number, email or address changes, update immediately.
  2. Nominate a trusted person (nominee) on all financial accounts and keep nominee info current. A valid nomination makes claims by heirs far simpler.
  3. Make small periodic transactions — a token deposit/withdrawal, or login to the account or app once a year prevents “inoperative” classification.
  4. Consolidate & close old accounts you no longer use (and withdraw any small balances), especially many FDs or multiple bank accounts.
  5. Track maturities & payouts — maintain a digital calendar for FD maturities, policy maturities, dividend dates and pension exits.
  6. Use online statements and email alerts so you receive alerts if a dividend or payout is issued.
  7. Maintain a central list (spreadsheet or secure notes) of every account, folio, policy number, UAN/PRAN, bank branch and login credentials (securely).
  8. Check UDGAM and regulator portals periodically (every year or after a major move) — a quick search can reveal overlooked balances. Reserve Bank of India
7) Common FAQs

Q: If funds are transferred to DEA/DEAF, are they lost forever?
A: No. Transfer to the DEA Fund is an administrative step; claimants (or nominees/heirs) can still get the money back by following the bank’s claim procedure. There is no statutory forfeiture simply because funds were transferred. Reserve Bank of India

Q: Is there a time limit to claim after transfer?
A: Regulators’ guidance shows there is no time-limit which extinguishes the claim — depositors or legal heirs can claim amounts even after transfer to DEA, subject to verification and documentation. Reserve Bank of India

Q: Who can claim for a deceased person?
A: A valid nominee can claim directly in most cases. Otherwise, legal heirs must produce succession documents (will, succession certificate, or legal heir certificate) as required by the bank/issuer. State Bank of India

Q: Are the amounts insured?
A: Bank deposits are covered by DICGC insurance up to ₹5 lakh per depositor per bank (subject to conditions) when a bank fails — this is separate from unclaimed/deposited amounts. When funds go to the DEA Fund due to transfer, the depositor still can get full balance after claiming and bank will seek reimbursement from DEA; insurance rules for bank failure are different. (See RBI / DICGC guidance for specifics.) Reserve Bank of India

8) Checklist — immediate steps to take (if you suspect you have unclaimed money)
  1. Search RBI UDGAM with your name / PAN / Aadhaar. Reserve Bank of India
  2. Check email for old dividend/redemption emails; check AMC registrars (CAMS/KFintech). The Economic Times
  3. Pull up old bank passbooks, FD receipts, insurance policy numbers, share certificates or folio numbers.
  4. Contact the bank / insurer / AMC investor services, provide documents and submit claim forms.
  5. If they ask for succession documents (deceased cases), talk to a local advocate or the bank’s grievance officer for the precise list required.
9) Why this matters (the broader case)

Returning unclaimed money to the rightful owners not only restores individual rights but also: reduces financial exclusion, improves household liquidity, prevents hardship for heirs, and increases public trust in financial systems. That’s why regulators (RBI/SEBI/IRDAI/EPFO) and the government are running awareness campaigns and building better search/claim tools. Recent drives to return ₹1.84 lakh crore and the RBI’s UDGAM portal are direct responses to this policy priority. The Times of India

10) Useful links & references (official / reporting)
  • RBI: UDGAM (Unclaimed Deposits portal) and DEA/DEAF FAQs. Reserve Bank of India
  • Recent news coverage on unclaimed deposits and government campaigns (e.g., Times of India, Economic Times, Indian Express). The Indian Express

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