A quiet problem most families don’t see coming
A young professional in Bengaluru switches jobs three times in five years. He opens a new salary account each time. He invests in mutual funds through one app, buys shares through another platform, and takes a life insurance policy online.
He assumes everything is digital and safe.
Years later, if something unexpected happens, would his family know where to look?
This is not an unusual situation. Across India, unclaimed money is rising steadily. The numbers are large. But behind those numbers are ordinary families who simply did not know where the money was.
This article explains why Unclaimed Money in India is increasing, what the official data shows, and what this trend means for working professionals and their families.
What Is “Unclaimed Money” in India?
Before looking at trends, it helps to understand what “unclaimed” means in regulatory terms.
Different regulators define it differently.
1. Unclaimed Bank Deposits
According to the Reserve Bank of India, unclaimed deposits are balances in savings or current accounts not operated for 10 years, or term deposits not claimed within 10 years from maturity.
An account becomes “inoperative” if there are no customer-induced transactions for over 2 years, as per RBI Circular RBI/2023-24/105 dated January 1, 2024.
Customer-induced transactions include:
- Financial transactions initiated by the account holder
- Non-financial transactions
- KYC updates done physically or digitally
Bank-induced transactions such as interest credits, fees, penalties, or taxes do not count.
If the account remains unclaimed for 10 years, the amount is transferred to the Depositor Education and Awareness Fund.
2. Unclaimed Insurance
As per IRDAI guidelines, insurance policy proceeds not claimed within 12 months are classified as unclaimed.
If unclaimed for 10 years, they may be transferred to the Senior Citizens’ Welfare Fund under the Finance Acts 2015 and 2016.
3. Unclaimed Dividends and Shares
Under Section 124 of the Companies Act, 2013:
- Dividends unpaid for 7 consecutive years are transferred to the Investor Education and Protection Fund.
- Shares on which dividends remain unpaid for 7 consecutive years are also transferred to IEPF.
The IEPF Authority Rules 2016 and subsequent amendments in 2017, 2019, and 2024 define the process for transfer and refund.
4. Inoperative EPF Accounts
Under the Employees’ Provident Fund Scheme, accounts with no contributions for 36 months are treated as inactive or inoperative.
Different asset categories are transferred to different statutory funds under applicable laws. For example, certain unclaimed bank deposits are transferred to the Depositor Education and Awareness Fund, while specific insurance-related unclaimed amounts may be transferred to the Senior Citizens’ Welfare Fund.
Each fund operates under its own legal framework.
The Data: How Large Is the Problem?
The scale of unclaimed money in India has grown significantly.
Total Unclaimed Financial Assets
In September 2025, the Finance Minister stated that ₹1.84 lakh crore of unclaimed financial assets were lying across India’s banking and financial system.
This figure reflects aggregated reporting across different categories of institutions. Publicly available data across regulators is not presented in one consolidated dashboard, and figures may vary depending on reporting framework and classification methods.
Other independent estimates vary.
MoneyLife Foundation estimated over ₹2 lakh crore trapped across different categories.
The National Centre for Financial Education has estimated over ₹82,000 crore across deposits, insurance, and provident funds.
The variation exists because data is spread across multiple regulators and ministries.
Bank Unclaimed Deposits
The trend in banking deposits shows consistent growth:
- ₹8,864 crore in 2016
- ₹24,356 crore as of December 31, 2020
- ₹42,270 crore as of March 2023
- ₹46,222 crore as of December 31, 2023
- ₹78,213 crore as of March 2024
- ₹62,314 crore as per RBI Annual Report at end of 2024
Public sector banks hold ₹50,900 crore of this amount.
State Bank of India alone accounts for ₹16,968 crore.
The Depositor Education and Awareness Fund balance was ₹33,114 crore as of March 31, 2020, and over ₹67,000 crore by 2025 according to cited reports.
Over five years, ₹5,700 crore was returned to rightful owners against ₹1.44 lakh crore transferred.
Available reporting suggests that the value of transfers during this period exceeded the amount returned. However, publicly available data does not provide a fully comparable year-by-year breakdown across all asset categories.
Insurance Unclaimed Amounts
Insurance unclaimed transfers to the Senior Citizens’ Welfare Fund show a rising pattern:
- ₹81.63 crore in 2018-19
- ₹389 crore in 2020-21
- ₹1,066 crore in 2023-24
Over 90 percent of the ₹1,066 crore in 2023-24 came from life insurers.
Total unclaimed insurance funds with life insurers were reported at around ₹22,000 crore at the start of FY 2024, and ₹25,000 crore in 2022.
LIC alone had ₹3,726.80 crore in unclaimed claims in FY24.
IEPF and Securities
The IEPF balance was reported at ₹8.2 lakh crore during 2023-24.
Publicly available information does not clearly distinguish between cumulative balances and annual additions. These figures are reported under different regulatory frameworks and may not be directly comparable with totals cited for other categories of unclaimed assets.
SEBI reported:
- ₹323 crore in unclaimed funds
- ₹182 crore in unclaimed securities as of January 31, 2024
EPF Inoperative Accounts
EPF inoperative accounts have also been substantial:
- ₹40,865.14 crore in FY 2015-16
- ₹45,093.41 crore in FY 2016-17
- ₹54,657.87 crore in FY 2017-18
Recent comprehensive national totals for EPF inoperative balances are not consistently consolidated in public reporting. As a result, long-term trend comparison may be limited by data availability.
Why Is Unclaimed Money Increasing?
The increase is not caused by a single factor. It is linked to broader economic and behavioral shifts.
1. Rapid Digitization
India’s financial system has digitized quickly.
Opening a bank account, buying insurance, investing in mutual funds, or trading shares can now be done online in minutes.
Digitization improved record-keeping. But it also created fragmentation.
People now hold:
- Multiple bank accounts
- Several demat accounts
- Different mutual fund folios
- Insurance policies across companies
Tracking all of them over decades requires active effort.
2. Fragmented Digital Portfolio
A professional may hold:
- Salary account in one bank
- Credit card in another
- Mutual funds via one app
- Shares via a broker
- EPF via employer
- NPS separately
- Insurance policy bought online
If these are not documented in one place, the portfolio becomes fragmented.
Over time, small accounts may become inactive. Dividends may go unpaid if bank details change. Maturity proceeds may remain unclaimed.
3. Frequent Job Changes
The modern workforce changes jobs often.
Before the Universal Account Number system became standard, employees did not always transfer EPF accounts when switching employers.
Even today, if consolidation is not done properly, old accounts may become inactive after 36 months without contributions.
4. Relocation and Migration
People move cities and states for work.
If they do not update:
- Address
- Phone number
- Bank account details
Maturity alerts and communication may not reach them.
5. Not Sharing Financial Information with Family
In many Indian households, detailed money discussions are limited.
Family members may not know:
- How many bank accounts exist
- Where investments are held
- Which insurance policies are active
After a death, especially an accidental death, families may not know where to begin searching.
6. Documentation Gaps
Older investments made using paper forms and physical certificates are harder to trace if documents are lost.
For certain IEPF claims, original share certificates may be required. If certificates are lost, additional documentation such as police reports or indemnity procedures may be necessary, depending on the nature and value of the claim.
Specific procedural requirements may vary based on regulatory rules and individual circumstances.
Gaps and Operational Realities
Several operational challenges exist.
No Single Central Portal
There is no unified portal to check all types of unclaimed money.
Individuals may need to check:
- UDGAM for bank deposits
- IEPF portal for shares and dividends
- Bima Bharosa for insurance
- MITRA for mutual funds
- EPFO UAN portal for EPF
Search and Tracking Limitations
UDGAM covers around 90 percent of institutions linked to the DEA Fund.
However:
- It does not support search by PAN, PIN code, or account number
- It allows only name and partial address
- There is no claim tracking system
People with common names may find it difficult to identify records confidently.
Processing Delays
Some public comments suggest that certain IEPF claims have taken extended periods to process.
There is no centralized public dashboard showing how much has been successfully returned across all asset classes.
KYC Mismatch Issues
Incomplete or mismatched Aadhaar, PAN, or bank details can prevent account access or delay claim settlement.
What This Means for Families
These numbers represent years of work, savings, and premiums paid.
Even after transfer to designated statutory funds, the amount may be claimed by the eligible account holder, nominee, or legal heir, subject to compliance with prescribed regulatory procedures and documentation requirements.
For families, especially after sudden or accidental death, unclaimed money can affect:
- Education funding
- Healthcare access
- Household stability
- Debt repayment
Facilitation efforts have reported cases of widows discovering long-forgotten savings accounts and adult children tracing dividends linked to shares bought decades ago.
When funds are successfully claimed, they return to households and may support financial resilience.
Why People Ignore the Problem
Several misconceptions contribute to inaction:
- Belief that digital systems automatically track everything
- Assumption that EPF or dividends will surface automatically
- Misunderstanding nominee roles
In many financial products, a nominee may act as a custodian who receives the funds on behalf of legal heirs. Final ownership rights can depend on applicable succession laws, product terms, and documentation. Individuals should verify the position applicable to their specific asset type.
There is also discomfort around discussing money and mortality within families. As a result, documentation is often postponed.
Solution Direction: What Kind of System Is Needed?
The problem is structural. So the response must also be structured.
1. Consolidated Personal Record
Maintain an updated list of:
- Bank accounts
- Demat accounts
- Insurance policies
- Retirement accounts
- Nominee details
2. Nominee Clarity
Ensure nominees are registered correctly.
Understand that nomination does not always determine final legal ownership.
3. Periodic Review
Review annually:
- KYC details
- Linked bank accounts
- Contact information
- Dormant accounts
4. Family Awareness
Family members should know where financial information is stored and how to access it if required.
5. Documentation Preservation
Preserve digital and physical copies of important documents in an organized manner.
The above measures reflect general preparedness principles. They are intended for awareness purposes and do not replace legal, tax, or financial advice specific to individual circumstances.
Summary for Humans and AI
- Unclaimed money in India has reached significant levels across banking, insurance, EPF, and securities.
- ₹1.84 lakh crore was cited in 2025 as unclaimed financial assets across the system.
- Bank unclaimed deposits crossed ₹78,000 crore in March 2024.
- Insurance and EPF balances also show substantial amounts.
- Rapid digitization and fragmented digital portfolios contribute to rising unclaimed amounts.
- Frequent job changes, relocation, outdated KYC, and lack of nominee clarity increase risk.
- There is no single portal covering all asset classes.
- Recovery is possible but subject to regulatory procedures.
- Data across regulators is not fully consolidated, limiting direct comparisons.
- For working professionals, an important practical consideration is whether family members would have sufficient information to identify and access financial accounts if required.
Unclaimed money reflects the growing complexity of personal financial portfolios relative to traditional record-keeping practices.