 "Rs 75,000 crore has been transferred to the Reserve Bank of India (RBI) Depositor Education and Awareness Fund. PTI")
Thousands of crores of rupees belonging to Indians are lying idle.
However, now you can reclaim it. This after Prime Minister Narendra Modi has called attention to the ‘Your Money, Your Right’ campaign. The scheme was launched by Finance Minister Nirmala Sitharaman in October in Gujarat.
But how much is lying in banks, stocks and insurance companies? What do we know about the scheme? How can you reclaim this money?
Let’s take a closer look.
How much is lying with banks, mutual fund firms, insurance companies
According to Modi, Indian banks are holding Rs 78,000
crore of unclaimed money belonging to Indian citizens. Of this.
Meanwhile, insurance companies have nearly Rs 14,000 crore lying unclaimed. Mutual fund companies also have around Rs 3,000 crore and dividends worth Rs 9,000 crore that have not been claimed.
Modi, in a LinkedIn post, said these facts have ‘startled a lot of people’ and that these assets represent the hard-earned savings and investments of countless families.
He added that the idea behind this initiative is to help every citizen reclaim what is rightfully his or hers.
What we know about the initiative
The initiative is being executed by a number of government departments.This includes:
The Department of Financial Services (DFS)
Ministry of Finance
RBI
The Securities and Exchange Board of India
The Insurance Regulatory and Development Authority of India
The Pension Fund Regulatory and Development Authority
The Investor Education and Protection Fund Authority.
It is also being aided by banks, insurance companies, mutual funds, and pension funds.
Sitharaman had ordered financial regulators to carry out a drive to help citizens collect their unclaimed deposits and claims across various financial sectors, including banks, shares, dividends, mutual funds and insurance.
How you can reclaim your money
According to the government, Rs 75,000 crore h as been transferred to the Reserve Bank of India (RBI) Depositor Education and Awareness Fund. This scheme receives deposits from accounts inactive for 10 years or more.
The Centre has held camps across 477 districts across India to guide citizens on how to reclaim their money. Around Rs 2,000 crore worth of funds have already been reclaimed by citizens in the first two months of the campaign. Modi has urged citizens to visit these facilitation camps set up in the district.
Citizens can also visit their branches with KYC documents such as the Aadhaar card, photograph, PAN card and activate their dormant bank accounts. They can then close these accounts.
Banks across India had been ordered by the RBI to help citizens get their unclaimed deposits. The updated guidelines ordered banks to put up unclaimed deposit details on their websites, including account holder information and a public search feature.
They had been told to verify the details submitted and process these applications. “Once a customer has filled in the details, it will ensure that the concerned bank branch reaches out to the customer for additional verification if required, and transfers the amount to the verified account,” a source told The Times of India.
Citizens can also visit the following sites to reclaim their funds:
Reserve Bank of India (RBI) – UDGAM Portal for unclaimed bank deposits & balances: https://udgam.rbi.org.in/unclaimed-deposits/
Insurance Regulatory and Development Authority of India (IRDAI) – Bima Bharosa Portal for unclaimed insurance policy proceeds: https://bimabharosa.irdai.gov.in/
Securities and Exchange Board of India (SEBI) – MITRA Portal for unclaimed amounts in mutual funds: https://app.mfcentral.com/
Ministry of Corporate Affairs, IEPFA Portal for unpaid dividends & unclaimed shares: https://www.iepf.gov.in/
Modi urged citizens to act now to reclaim what is theirs and ‘convert a forgotten financial asset into a new opportunity.’
“Your money is yours. Let us make sure that it finds its way back to you. Together, let us build a transparent, financially empowered and inclusive India!” the Prime Minister added.
With inputs from agencies