Will Your Money be Orphaned?

2 min readJan 12, 2022
  • As of 31-12-2020, more than Rs. 26000 Crores (USD 3.7B) were lying with Indian Banks as unclaimed deposits. There were about 9 Crore (90M) such accounts.
  • The Insurance companies in India had more than Rs 23000 Crores (USD 3.3B) of such deposits.
  • As for Mutual Funds, the figure stood at Rs 1600 Crore (USD 0.23B) as of 31-03-2021.

Put together, the Indian financial institutions have more than Rs 50,000 Crores (USD 7.1B) of unclaimed deposits.

There are three broad reasons for the same:

The Customer's family is not aware of these deposits

The customer did not keep the family informed about the investments. They also did not maintain a proper record which the family could consult.

The Customer did not avail of nomination facility

Every financial instrument offers a nomination facility. The process for claiming the amount from an account without nomination is cumbersome. Many families are not able to handle the complicated processes and give up.

The Customer did not create a Will

Family disputes are another major reason for the inability of the family members to claim the deposits. In the absence of a Will, the courts decide the legal heirs as per the religion specific succession laws. The process is long-drawn and drags on for years together.

You can take care of the above factors, by taking the following steps:

  • Keep a proper record of your financial matters. Also, keep your family informed about the details and the related documents.
  • Every asset must have a nomination in place. Review regularly and keep updated.
  • Write a Will. Though it is not mandatory, get your Will registered, if possible. As far as practical, the person to whom you bequeath an asset should be the nominee of that asset.

It takes little effort to ensure that your hard-earned money's future is secure and your absence does not orphan it.




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