In India, a substantial amount of unclaimed assets is accumulating within the financial system, including unclaimed bank deposits, shares, insurance, and provident funds.
Despite the significant figures, a major issue arises from individuals not knowing how to initiate the process of reclaiming their money.
Fortunately, the unclaimed funds are not lost; they are still recoverable. However, successful retrieval relies on adhering to the correct procedures for each asset category and ensuring all essential documentation is in order.
HOW TO BEGIN THE RECLAMATION PROCESS
The initial step entails identifying the whereabouts of the unclaimed funds.
Since there is no single centralized platform for all types of unclaimed assets, individuals need to search across various databases. The search should commence with bank deposits, then proceed to shares and dividends, followed by EPF and insurance policies.
To search for unclaimed bank deposits, individuals can utilize the Reserve Bank of India’s UDGAM portal, where basic personal information like name, PAN, or date of birth can be used for the search.
Upon finding a match, it is crucial to note down the specific bank and branch details.
For unclaimed shares and dividends, individuals should refer to the Investor Education and Protection Fund (IEPF) website, where companies disclose details of unclaimed funds transferred due to prolonged inactivity.
Regarding provident fund balances, individuals can access their accounts on the EPFO portal using their Universal Account Number (UAN) for online claims, even for inactive accounts.
For unclaimed insurance policies, individuals can either visit the insurer’s website or utilize the regulator’s centralized search option to verify the existence of any unclaimed policies.
WHAT TO DO AFTER IDENTIFYING THE ASSETS
Once the assets are located, the subsequent step involves commencing the claims process with the relevant institution.
In the case of unclaimed bank deposits, individuals are required to approach the respective bank branch linked to the account and submit a claim form along with identity proof, address proof, and account-related particulars.
For cases where the account holder has deceased, documents such as a death certificate or succession proof for legal heirs will be necessary.
In the context of unclaimed shares, the process involves filing Form IEPF-5 online, printing it, and submitting it with supporting documents to the designated officer of the company for verification before processing the claim.
EPF claims can be filed online through the EPFO portal post completion of KYC requirements. Typically, linking Aadhaar, PAN, and bank details is essential for claim processing.
For insurance claims, policy details, identity proof, and verification of the nominee or legal heir are necessary, depending on the circumstances.
COMMON CHALLENGES IN THE RECLAMATION PROCESS
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