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News India Live, Digital Desk: There are crores of rupees deposited in the banks and insurance companies of our country for which no heir has come forward. Now the biggest court of the country on this serious issue, Supreme Court Has adopted a tough stance. The court has asked the Central Government and the Reserve Bank of India (RBI) what concrete steps are being taken to deliver the ‘unclaimed funds’ deposited in a person’s bank accounts or insurance policies to his legal heirs after his death.
Fund worth crores of rupees is ‘unclaimed’
According to a data, thousands of crores of rupees are lying in various banks and financial institutions which have not been claimed by anyone for years. Often, after the sudden death of the account holders, their family members are not aware of these accounts or investments, due to which this money remains lying in the government treasury or special fund. The Supreme Court has emphasized on simplifying the process of sending this money to its rightful owners.
What is ‘Centralized Tracking System’?
One in the petition filed in the Supreme Court ‘Centralized Tracking System’ There has been a demand to make.
All information in one place: Through this system, any person will be able to check in which banks or companies their deceased relatives’ money is deposited by entering their name, PAN card or Aadhaar number.
Transparency: With this, the nominee will not need to wander from door to door and the entire process will become transparent.
RBI’s ‘Udgam’ portal: Although RBI has launched the ‘UDGAM’ portal, the Court is in favor of making it more comprehensive and accessible.
Preparation to make nomination process mandatory and strict
The court also expressed concern that nominee information in many old accounts is not updated. Experts believe that in the coming times:
When opening a bank account Nominee Naming will be made mandatory and more effective.
As soon as the death certificate is received, banks can be instructed to become proactive and contact the heirs.
Identification of unclaimed money will be expedited through e-KYC.
Why is this decision important for the general public?
This news is important for every person who has invested in Fixed Deposit (FD), Savings Account or Life Insurance. After the strictness of the court, now it will be difficult for banks to hide how much money is unclaimed in which account. The government will now have to provide a system so that the common man does not have to get entangled in legal complications to get his inheritance.
