Unclaimed Financial Assets: How to check and claim your forgotten money from banks, mutual funds, insurance and NPS

Do you know that crores of rupees are lying forgotten in India’s financial system? Right now, the country has ₹78,000 crore in unclaimed bank deposits, ₹14,000 crore in unclaimed insurance funds, and ₹3,000 crore in unclaimed mutual fund investments.

Some of this money could belong to you, your parents, or your grandparents and has been lying unclaimed in bank accounts, mutual funds, or insurance policies for years, and you might not even be aware of it.

So, let’s find out the different types of how you can check this amount, and the steps to claim them.

Different types of unclaimed financial assets

There are five types of unclaimed financial assets you need to check.

1. Bank deposits
2. Mutual funds
3. Shares/ dividends
4. Insurance policies
5. National pension system

Bank deposits

This includes all types of except those on hold due to legal proceedings. As per the Reserve Bank of India (RBI), bank deposits that are not operated for at least 10 years are directly transferred to the DEA (Depositor Education and Awareness) fund.

Bank deposits become unclaimed when the account is forgotten by the beneficiary or by the legal heirs. If the details of the customers are changed, it can also turn into unclaimed assets.

You can check unclaimed assets on the respective bank websites or the RBI’s portal.

How to claim the bank deposits?

1. Once you check the amount on the UDGAM portal, you need to visit the respective bank branch or home branch and fill out the common claim application form. You can also file a claim online through the bank’s website.
2. For proof of identity or proof of address, you need to submit any of the following documents, including a passport, a voter ID card, a driving licence, and an Aadhaar card.

Mutual funds

The unclaimed are the redemption amount, or the dividend earnings from the mutual funds that are not credited to the investor’s bank account. An inactive folio is one in which an investor has not initiated any transaction (financial or non-financial) in the last 10 years, but a unit balance is available in the folio.

The main reasons mutual funds enter unclaimed status are bank account closure, incomplete bank account details, or non-KYC compliance.

To check the unclaimed amount, you can visit the website of AMC or RTA. You can also visit the website and go to the MITRA portal to check the unclaimed amount.

How to claim the mutual funds?

1. After checking the amount on the MITRA portal, you can submit a claim request through the respective AMC or the Registrar and Transfer Agent (RTA) by completing the required form.
2. The AMC/RTA will verify your signature and other details before processing the claim.
3. Since the payout from the unclaimed amount is treated as a mutual fund redemption, the applicable NAV will be based on the date and time the request is received.
4. Once the claim is approved, the proceeds are generally credited within 2–5 working days.

Shares & dividends

This includes shares, debentures, and dividend earnings. If any amount remains unclaimed for 7 years, it is transferred, along with the accrued interest, to the Investor Education and Protection Fund (IEPF).

You can check the unclaimed shares on the portal by entering the PAN, investor details, or company name.

How to claim the shares and dividends?

1. File Form IEPF-5 on the MCA portal with details such as PAN, Aadhaar, bank account, demat account, and information about the unclaimed shares or dividends.
2. Download and print the submitted form, acknowledgement receipt, and the auto-generated indemnity bond after successful submission.
3. Send the required documents (IEPF-5 form, indemnity bond, identity proof, share certificates, etc.) to the company’s IEPF Nodal Officer and upload the postal dispatch proof on the MCA portal.
4. Once the company verifies the claim and the IEPF Authority approves it, the money will be credited to your bank account, and the shares will be transferred to your demat account.

Insurance policies

An unclaimed insurance amount is money that an insurance company owes to a policyholder, nominee, or beneficiary but has been unable to pay due to the claimant being unreachable or not coming forward to claim it. This includes any income earned on the amount and remains unpaid for more than 12 months after it becomes due.

If the amount continues to remain unclaimed for over 10 years, the insurer is required to transfer it to the Senior Citizens’ Welfare Fund (SCWF).

You can check the unclaimed insurance amount on the respective website of the insurer or the IRDAI’s Portal.

How to claim the insurance amount?

1. Reach out to the insurer and provide your policy details to initiate the claim process.
2. Provide your bank account details, cancelled cheque (or bank passbook/statement), photo ID, and KYC documents for identity verification.
3. Legal heirs may need to provide a succession certificate/ death certificate. If the original policy document has been lost, the insurer may also ask for an indemnity bond as per its internal guidelines.

National pension system (NPS)

These are NPS or NPS-Lite contributions deposited through Points of Presence (POPs) but not credited to the subscriber’s Permanent Retirement Account Number (PRAN) due to reconciliation issues.

Such amounts may remain unclaimed when subscriber details are incomplete or unavailable, making it difficult to identify the rightful account holder. If these contributions remain unreconciled for more than seven years with POPs, they are treated as unclaimed amounts.

You can check the unclaimed pension amount through the portal.

How to claim the pension amount?

1. The subscriber, claimant, or depositor can submit a refund claim to PFRDA either directly or through the concerned intermediary/POP, along with the prescribed claim form and supporting documents. Claims can be filed within 25 years from the date the unclaimed amount was transferred.
2. After approval, the claimant will receive the deposited contribution and interest as determined by PFRDA. The refund amount will be credited directly to the claimant’s bank account.

Note: On 29 May, the Department of Financial Services (DFS) launched the Portal that can help you search for unclaimed bank deposits, insurance proceeds, shares, dividends, and mutual fund investments in one place.

Disclaimer: This is purely for educational/ informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.