New Delhi: The Supreme Court on Monday sought responses from the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI) and other concerned authorities regarding a petition for creating a comprehensive legal and institutional framework to identify, reconcile, and return Rs 3.50 lakh crore of unclaimed financial assets in India to their rightful owners or heirs.
The petition, filed by advocate and social activist Aakash Goel, highlighted that these unclaimed assets — including dormant bank accounts, unpaid dividends, matured insurance proceeds, unpaid provident fund balances, and unused mutual fund units — are scattered across multiple financial institutions without a unified mechanism for citizens to track or claim them.
It proposed the creation of a centralised portal, enabling citizens to access information about all their financial assets, whether operational, inactive, dormant, or unclaimed, across entities regulated by RBI, SEBI, and IRDAI.
A Supreme Court bench headed by Justice Vikram Nath also issued notices to the National Savings Institute, Employees’ Provident Fund Organisation (EPFO), Pension Fund Regulatory and Development Authority (PFRDA), and the Ministry of Consumer Affairs and Ministry of Food and Public Distribution.
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Nature of Unclaimed Assets and Challenges
Goel highlighted that India currently has 9.22 crore dormant bank accounts, with an average balance of Rs 3,918. In addition, unclaimed financial assets worth over Rs 3.5 lakh crore remain unclaimed. Many of these funds belonged to deceased individuals, and the absence of nominee details and a unified tracking system has prevented rightful heirs from claiming the assets. Goel described this as “trapped wealth”, which neither benefits owners nor contributes effectively to the economy.
Senior counsel Mukta Gupta, representing the petitioner, noted that although the Delhi High Court had earlier recognised the gravity of the issue, authorities have failed to act. She said,
“The funds of millions of ordinary citizens remain stuck across banks and insurance companies.”
Measures Sought by the Petition
The petitioner requested the court to direct authorities
1. Mandate regulated entities to maintain minimum nominee details for each financial asset.
2. Establish a centralised portal for citizens to track all financial holdings.
3. Coordinate with ministries to identify deceased account or asset holders and communicate with legal heirs.
4. Develop a seamless system in collaboration with RBI, SEBI, IRDAI, and other entities to ensure unclaimed funds reach their rightful owners.
Further Action
The Supreme Court’s directive aims to enhance financial transparency and ensure that trapped funds are returned to their rightful owners. Implementation of a centralised system will not only benefit millions of citizens but also unlock substantial capital for the economy.
