Unclaimed Deposit: There is more than Rs 35,000 crore unclaimed amount in the banking system alone, while the total amount is said to be more than Rs 1 lakh crore.
Unclaimed Deposit: Union Finance Minister Nirmala Sitharaman on Tuesday asked banks and financial institutions to ensure that their customers nominate their successors, to help reduce the amount of unclaimed money. Recently, the banks of the country under the Central Reserve Bank had started a campaign to transfer the unclaimed amount of thousands of crores lying under fixed deposits to the right customers, RBI had recently launched Udgam Portal in this regard. ) After which this statement of the Finance Minister is important.
Financial institutions will have to think about the future
Finance Minister Sitharaman said at the Global Fintech Fest (GFF), “I want the banking system, the financial ecosystem (including) mutual funds, stock markets… everyone to keep in mind that when someone withdraws their (customer’s) money… “If the customer transacts Rs. 1,000,000, then organizations will have to think about the future and ensure that they (customers) nominate their successor, give their name and address.”
Thousands of crores lying in the banking system
According to a report, there is more than Rs 35,000 crore unclaimed money in the banking system alone, while the total amount is said to be more than Rs 1 lakh crore.
Sitharaman said that ‘tax haven’ and ’round tripping’ of money is a threat to the responsible financial ecosystem. ‘Round tripping’ refers to a company selling an asset to someone else to generate sales and then buying it back later. The Finance Minister urged fintech companies to invest in cyber security and said that trust is very important.
RBI’s UDGAM Portal
The Central Reserve Bank had launched the Udgam portal in August, under which with the help of UDGAM (Unclaimed Deposits – Gateway to Access information), it will be easier for people to find the money lying in many banks, which has not been claimed by anyone. Due to increasing amount of unclaimed deposits lying in banks, RBI runs several campaigns from time to time to spread awareness among the people. Furthermore, through these initiatives RBI is encouraging the public to identify and contact their respective banks to claim unclaimed deposits.
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