Have you heard about unclaimed money in India? Read this

Mr.Arun Jaitley said that there was a large amount of money lying unclaimed in small savings schemes such as public provident funds and post office deposits, which may be used to benefit the active accounts. This is what he said during his budget speech 2014 “These are mostly out of investments belonging to the senior citizens and on their demise, remain unclaimed for want of relevant payment instructions. I propose to set up a committee to examine and recommend how this amount can be used to protect and further financial interests of the senior citizens. The committee will give its report not later than December

Large amount of money – means how much?

It’s over Rs.26,000 Crores! Yes, as per the information given by the ministry of finance, the total unclaimed amount (or money in inoperative accounts) in provident fund (EPF) is over 22500 Crore, in insurance companies over Rs.3000 Crore and in bank fixed deposits over Rs.500 Crores.

Why the investors have not claimed it?

Isn’t it strange? Deposit holder is not claiming his own money? What would have made them not to claim this money?

• The account holder has forgotten about holding the bank deposit. (possible, if the amount is small)
• Got transferred to another location; instead of visiting the branch for claiming a small amount (say, Rs.500 or Rs.1000), people would have just left it (now after internet banking these cases would have come down)
• The account holder dies and the legal heirs are not aware of the bank account.
• People would have gone abroad for good without closing the account;

What government is doing with this money?

• Through Banking Laws (Amendment) Bill, 2011 a new fund is created – Depositor Education and Awareness Fund. The amount in bank accounts which have not been operated upon for a period of more than 10 years shall be transferred to the Fund. The fund is proposed to be utilized for promotion of the depositor’s interest and other purposes as specified by RBI   
• Senior citizen benefit scheme (proposed in budget) The details of the scheme will be known early next year

Check whether you also have a dormant account anywhere! In case you find one, you can get it activated by producing valid ID proof to the bank.  

Thought for the day

It’s not about how much money you make, it’s how you save it. It’s not about how you save it, it’s whether know it

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