India’s Growing Pool of Unclaimed Money Across Banks, Insurance Companies and Investments

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TL; DR: Unclaimed funds across banks, insurers, and investments have surged sharply in recent years. Unclaimed bank deposits alone neared ₹50,000 crore by 2023, with PSBs holding most. Insurers transferred ₹1,066 crore to the Senior Citizens’ Welfare Fund in 2024, mostly from life policies, and the balance in IEPF touched 8.2 Lakh Crore during 2023-24. Recovering these idle savings can boost transparency and economic circulation.

Context:
Across India’s banks, insurance companies, and mutual fund houses, there lies a quiet pool of money, known as unclaimed deposits. These are the funds that belong to people, but for one reason or another, haven’t been touched for years.

It might be an old savings account, a fixed deposit someone forgot to renew, a life insurance policy whose nominee never made a claim, or a mutual fund redemption that never reached the investor. Sometimes people move cities, pass away without informing their families, or simply lose track of their accounts. Over time, the money just sits there, belonging to someone, but claimed by no one.

Who compiles this data?
Different financial regulators manage unclaimed monies in their own sectors.

Together, these regulators track how much unclaimed money exists and where it’s stuck so that people can find and claim what’s rightfully theirs.

Where can I download clean & structured data about Unclaimed Deposits?
Clean, structured, and ready-to-use datasets on unclaimed deposits in banks, unclaimed policy proceeds from insurance companies, and unclaimed investment proceeds, such as dividends or interest on bonds, can be downloaded from Dataful.

Key Insights

Unclaimed deposits in banks at almost half a lakh crore
Data compiled across all categories of banks, including public sector, private sector, foreign banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), and Payments Banks, indicates that the total value of unclaimed deposits stood at nearly ₹46,221 crore as of 31 December 2023. This represents almost a fivefold increase from around ₹8864 crore reported at the end of 2016.

A closer look at the composition shows that Public Sector Banks (PSBs) continue to dominate the landscape, accounting for roughly 80% of the total unclaimed deposits. Private Sector Banks contribute around 10%, while the balance is distributed among foreign banks, RRBs, SFBs, and Payments Banks.

Over ₹1000 crores of Unclaimed amounts for insurance policyholders transferred to SCWF in 2023-24
As per the Insurance Regulatory and Development Authority of India (IRDAI), insurers must transfer policyholder amounts unclaimed for over 10 years, along with interest, to the Senior Citizens’ Welfare Fund (SCWF) each year. The SCWF also receives unclaimed funds from Small Savings Schemes, EPF, PPF, and the Coal Mines Provident Fund.

Data on unclaimed insurance proceeds shows that as of 31 March 2024, insurers transferred a total of ₹1,066 crore to the SCWF in 2023-24. Notably, life insurers accounted for over 90% of this amount, a substantial rise from about 60% in 2018, indicating that long-dormant life insurance policies make up the bulk of such transfers.

Over 8 Lakh Crores transferred to IEPF by companies
If a declared dividend remains unpaid or unclaimed for seven years, they are required to be transferred to the Investor Education and Protection Fund (IEPF). Similarly, any shares linked to dividends that have not been claimed for seven consecutive years or more are also moved to the IEPF.

Data shows that by the end of 2023–24, companies had transferred over ₹8.2 lakh crore to the IEPF, a fourfold increase from about ₹2 lakh crore in 2017–18. This steep rise highlights the growing volume of dormant investments in India’s corporate sector.

Why does it matter?
First and foremost, for individuals and families, reclaiming unclaimed deposits restores rightful ownership. A forgotten fixed deposit, a life insurance payout, or a mutual-fund redemption could make a difference in someone’s financial well-being.

From a systemic perspective, cleaning up these dormant liabilities enhances the transparency and health of the financial system. Crucially, unlocking even a portion of this idle pool has wider economic implications. When claimed, these funds return to circulation either by being spent, reinvested, or redeployed into productive use rather than lying dormant.

Key Numbers