The amount of money lying with the government, in the form of unclaimed deposits, interest, insurance, mutual fund investment, shares, dividend and provident fund dues, has been swelling rapidly every year.
This money mostly belongs to middle-class, tax-paying Indians. This money largely remain confiscated with the Government as procedure for reclaiming the same quite cumbersome and beyond understanding of common man whereas IEPF boasts that its process is “Simple, easy and FREE OF COST.”
An article in The Economic Times (ET) in July 2021 says that all regulators put together, collectively hold over Rs82,000 crore or more that legitimately belongs to Indian savers. (Rs 82,000 crore lying in unclaimed bank a/cs, life insurance, mutual funds, PF: How to get your money back).
Most common reason for funds remaining unclaimed is that people have died intestate and without informing their families about their investments, banks accounts, insurance policies, etc. Many have not recorded nominees either and the nominees may not be aware of such investment. Often, money cannot be claimed because of disputes between heirs and litigation that drags on for decades. In several cases, people are unable to claim funds because of issues with KYC documentation or other red tape.
