Govt to launch nationwide drive to return unclaimed bank deposits, dividends and policies
New Delhi: The central government is gearing up to launch a sweeping drive across 500 districts to return unclaimed financial assets, ranging from dormant bank deposits and unpaid dividends to lapsed insurance policies and pension funds, to their rightful owners, a person familiar with the matter told Mint.
The initiative was proposed by finance minister Nirmala Sitharaman during the 29th meeting of the Financial Stability and Development Council (FSDC) held in Mumbai on Tuesday. The meeting was attended by senior officials from the Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi), Ministry of Corporate Affairs (MCA), Insurance Regulatory and Development Authority of India (Irdai), and Pension Fund Regulatory and Development Authority (PFRDA).
As part of the plan, regulators have agreed to hold coordinated outreach camps at district headquarters to help citizens claim these unclaimed assets, the person said, requesting anonymity.
To simplify financial access, the council also decided to implement a unified Know Your Customer (KYC) framework, which is expected to be completed by the end of the current financial year (FY26).
'While all regulators will follow common KYC norms in general, individual regulators may include additional sector-specific requirements if needed. Standardised KYC will enhance ease of living,' the person said. 'The objective is to enhance ease of living for citizens and simplify financial access.'
Spokespersons for the ministry of finance, RBI, Sebi, MCA, Irdai, and PFRDA did not respond to emailed queries.
During Tuesday's meeting, Sitharaman called for expedited efforts to return unclaimed financial assets and pushed for streamlining the KYC process to improve user experience across the financial system.
The FSDC also reviewed India's macro-financial stability and preparedness, and discussed the need to bolster cyber resilience in the financial sector.
'In light of the analysis of cybersecurity regulations, sectoral preparedness, and the recommendations of the Financial Sector Assessment Programme (FSAP) 2024-25, the FSDC considered strengthening the cyber resilience framework of the Indian financial sector through a financial sector-specific cybersecurity strategy,' the finance ministry said in a statement.
The council also discussed the implementation of earlier decisions and Budget announcements, with a focus on regulatory efficiency, investor onboarding, and return of unclaimed assets.
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