Data | Unclaimed wealth with Indian banks rose to a three-year high in 2020

Over the years, the unclaimed life insurance amount has increased 1.5 times

August 06, 2021 07:29 pm | Updated November 27, 2021 04:08 pm IST

The LIC Building in Delhi. File

The LIC Building in Delhi. File

About ₹1,50,000 crore is lying as unclaimed deposits/amounts with various Indian banks and insurance companies as of December 2020. This is a significant increase from about ₹1,30,000 crore two years ago. A deposit is classified as 'unclaimed' if the customer doesn't make any transaction using that account for at least 10 years. Most such unclaimed money exists with public banks/ insurance providers. The State Bank of India has 15% of the total unclaimed deposits, the highest among all the banks.

Growing amount

The graph shows the amount of unclaimed money (₹ crore) In Indian banks and the number of such accounts. Both the unclaimed amount and the accounts increased by 1.7 times between 2018 and 2020. As of December 2020, ₹1,24,356 crore of unclaimed money existed in 8.13 crore accounts.

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Share of deposits

Public Sector Banks hold most of the unclaimed deposits, though the share has come down marginally in recent years. In 2018, 88% of such accounts were in PSBs. The share reduced to 84% in December 2020. The State Bank of India had ₹3,577 crore of unclaimed money across 1.31 crore accounts as of December 2020.

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Insurance money

The graph shows the amount of unclaimed insurance amount with companies. Over the years, the unclaimed life insurance amount has increased 1.5 times.

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Share of amount

Life Insurance Corporation of India holds 82% of all unclaimed insurance amounts as of December 2020. The share of such unclaimed amounts with the LIC was only 69% in 2018. LIC of India had ₹1,19,100 crore of unclaimed money, which is over 80% of the total such money in all insurance companies.

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Unclaimed deposits have to be transferred to the RBI's Depositor Education and Awareness (DEA) Fund every month. After 10 years, if a claim on the deposit is made, the banks settle it from their own funds and claim it back from the DEA Fund later.

Also read: Data | Are coercive steps needed to control population while passive methods work

Source: Lok Sabha

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