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Informist, Monday, Oct. 6, 2025

 

--SC notice to RBI, SEBI on plea for framework on unclaimed fincl assets 

--Plea seeks framework to restitute INR 3.5 tln unclaimed fincl assets 

 

NEW DELHI – The Supreme Court on Monday issued a notice to the Reserve Bank of India, the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority of India and others on a petition seeking formulation of a comprehensive legal and institutional framework for identification, reconciliation, and restitution of INR 3.5 trillion unclaimed financial assets in India to their rightful owners or heirs. The court also sought replies from National Savings Institute, Employees Provident Fund Organisation, Pension Fund Regulatory and Development Authority and Ministry of Consumer Affairs, Food and Public Distribution.

 

These unclaimed assets, consisting of dormant bank accounts, unclaimed dividends, matured insurance proceeds, unpaid provident fund balances, unutilised mutual fund units are scattered across multiple financial institutions with no unified mechanism to locate or claim them, said Aakash Goel, the petitioner, who is an activist. The said unclaimed financial assets have been accumulated primarily due to the absence of a centralised portal made available at one place across the regulated entities, said the petitioner. The same is also the result of the absence of mandatory guidelines for taking details of the nominees for each financial asset of individuals that remain unclaimed due to lack of information or proper access, said the petitioner. 

 

According to the petition, the lack of action has led to absence of proper and systematic information which is severely prejudicial to the benefit of the general population, especially that of the vulnerable class of persons, including but not limited to economically disadvantaged individuals.

 

The citizens of India are in dire need of efficient and secure access to their own or inherited financial assets to live a dignified life which is guaranteed under Article 14 and 21 of the Constitution of India, said the petitioner. The right to property and the right to information, read with right to die with dignity under Article 21, mandate that the State must actively facilitate access to and return of such unclaimed assets to legitimate owners, said the petitioner.

 

The petitioner has sought a direction to RBI, IRDAI, National Savings Institute and Pension Fund Regulatory and Development Authority to establish a centralised portal enabling individuals, after they complete e-KYC requirements, to access a comprehensive list of all financial assets whether active, inactive, dormant, or inoperative held across entities regulated by the respective regulators. It sought orders to the respondents to issue guidelines to their regulated entities to mandate rules regarding minimum details about nominees for each financial asset.

 

Further, the petitioner sought directions to respondents to establish or facilitate a seamless system in coordination with the respondent Ministry of Home Affairs and Department of Food and Public Distribution, thereby enabling regulated entities to know about death of the account or asset holder and communicate appropriately after identifying family members in cases where financial assets lack a designated nominee.  End

 

Reported by Surya Tripathi

Edited by Vandana Hingorani 

 

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