How to Get Back Your Forgotten Investments? Ways to Avoid Unclaimed Investments? Know here

More than Rs 82,000 crore of investor wealth is lying unclaimed in neglected and lost investments

NEW DELHI: People don't share financial information with their family members or relatives. At times, because of an unfortunate death, the family members or relatives are unaware of the monetary details of the expired person. In that case, a few of us fail to monitor multiple bank accounts and fixed deposits (FD) in various banks as we move cities and jobs.

Investment Lying Unclaimed in Government Records

At present, there is a lot of cash lying unclaimed in such records. As of now, more than Rs 82,000 crore of investor wealth is lying unclaimed in neglected and lost investments.

Fortunately, regulators have found a way to make it simple for owners to get their cash back. The Insurance Regulatory and Development Authority of India (IRDAI) has made it obligatory for all insurance companies or agencies to show data of unclaimed amounts if the sum is more than Rs 1,000. SEBI has made it required for mutual fund houses to give details of unclaimed ventures on their sites. You can check if there is any unclaimed entirety simply by entering in the financial backer's name and PAN.

It is to be mentioned that some proceeds, which are not guaranteed by the depositor, are kept in Depositors Education and Awareness Fund (DEAF), formed by the Reserve Bank of India (RBI) in 2014. Deposits from all banks which are out of commission for at least 10 years are moved into this huge pool of unclaimed cash.

The Association of Mutual Funds in India states that the total unclaimed dividends and redemption amounts is Rs 1,100 crore. It is estimated that close to Rs 17,880 crore is lying in inactive folios that are forgotten by the investor or don't have any claimant or petitioner. This is a traditionalist estimate and comprises 1% of the total AUM held by retail investors.

On July 5, the Reserve Bank of India (RBI) has changed guidelines for late fixed deposits (FD) wherein if an investor doesn't guarantee the returns after maturity, the bank will charge the lower interest rates applicable from investment funds rate or contracted revenue. RBI characterizes a deposit as unclaimed when the contributor or depositor doesn't make any transaction in the record for 10 years or more. Apparently, unclaimed deposits with banks have been developing each year.