Unclaimed Funds

What are Unclaimed Funds?

Unclaimed funds are funds belonging to a person or business but not yet claimed within a given time. This can happen when the owner forgets, does not know about it, or cannot be reached.

Unclaimed Funds Examples

• Inactive bank accounts
• Unclaimed fixed deposits
• Insurance policy proceeds not claimed
• Dividends on shares not claimed
• Refunds from utility companies or mutual funds

Why do funds go unclaimed?

Unclaimed funds typically arise due to changed addresses, death of the account owner, or plain ignorance. Unless something is done after a long while, such funds are termed as "unclaimed" by the organization.

What happens to Unclaimed Funds?

In India, unclaimed bank sums, insurance company sums, or mutual fund sums are redirected to specific government-run funds like:

• Depositor Education and Awareness Fund (DEAF) for banks
• Investor Education and Protection Fund (IEPF) for stocks and dividends
• Senior Citizens' Welfare Fund (SCWF) for a few insurance and post office plans

How to claim Unclaimed Funds?

The rightful owner or their lawful heirs can claim the money by presenting authentic documents with the involved institution or organization. The majority of companies and regulators now authorize online tracing and claiming of unclaimed funds.