India’s financial landscape conceals a quiet crisis—billions in dormant wealth scattered across forgotten bank accounts, unclaimed dividends, lapsed insurance policies, and undisclosed benami assets.

These unclaimed assets, often forgotten or inaccessible, represent a significant loss for individuals, families, and the economy.

As of 2025, the total unclaimed wealth in India exceeds ₹2.5 lakh crore, a staggering figure that underscores the urgency of addressing this issue.

This article provides a comprehensive analysis of unclaimed deposits, dividends, Life Insurance Corporation (LIC) policies, and benami properties,

backed by statistical data, exploring their causes, impacts, regulatory measures, and innovative solutions to revive this dormant wealth.

Understanding Unclaimed Wealth

Unclaimed wealth refers to financial assets that remain inactive or unaccessed for extended periods, typically 7-10 years, as defined by regulatory bodies like the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA). This includes:

1-Unclaimed Deposits:

Funds in savings, current, or fixed deposit accounts that haven’t had any activity or transactions for over 10 years.

According to ‘Business Standard“, As of March 2024, unclaimed deposits in Indian banks totaled ₹78,213 crore across 14.9 crore accounts, a 26% increase from ₹62,225 crore in March 2023.

The Depositor Education and Awareness (DEAF) Fund, managed by the RBI, held ₹42,270 crore in 2023, with annual transfers growing by 13%.

Public Sector Banks (PSBs) account for 80% of unclaimed deposits, with the State Bank of India (SBI) holding ₹8,069 crore across 2.16 crore accounts as of December 2022.

Private banks like ICICI and HDFC hold ₹1,074 crore and ₹447 crore, respectively.

2- Unclaimed Dividends

Dividend payments from companies or mutual funds not claimed by shareholders.

According to “MoneyControl” As of July 2023, the Investor Education and Protection Fund (IEPF) under the MCA held ₹6000 crore in unclaimed dividends and interest, excluding the value of unclaimed shares.

The value of unclaimed shares from 1,561 listed companies was estimated at ₹82,199 crore as of August 2024, bringing the total IEPF-held wealth to nearly ₹88,000 crore.

LIC alone reported unclaimed dividends as a significant issue, with shareholders required to update bank details with depository participants to reclaim funds.

3– Unclaimed LIC Policies

Matured insurance policies or death benefits not claimed by policyholders or nominees.

In FY24, LIC reported unclaimed maturity benefits amounting to ₹880.93 crore, linked to approximately 3.72 lakh policyholders.

As of December 2020, LIC held ₹1,19,100 crore in unclaimed insurance funds, accounting for 82% of the total unclaimed insurance amount in India, up from 69% in 2018.

Minister of State for Finance Pankaj Chaudhary told the Lok Sabha in a written response that up to 3,72,282 policyholders failed to collect maturity benefits in the financial year 2024,

4- Benami Properties

Real estate held under fictitious names or without clear ownership, often untraceable by rightful owners.

According to “BusinessLine” The Income Tax Department identified  benami properties worth ₹18,000 crore till july 2022 under the Benami Transactions (Prohibition) Act, 1988.

As of March 2023, 621 properties were provisionally attached, valued at ₹2,200 crore, with 87% in urban areas.

Estimates suggest benami properties worth ₹50,000 crore remain undetected, often tied to unclaimed or disputed ownership.

5- Total Unclaimed Wealth

As of 2025, the total unclaimed wealth, including bank deposits, dividends, insurance, provident funds (₹10,000 crore), and mutual funds (₹17,880 crore), exceeds ₹2.5 lakh crore.

This figure has grown 1.7 times since 2018, when unclaimed deposits and insurance alone totaled ₹1,30,000 crore.

This data paints a stark picture: unclaimed wealth is not just forgotten money but a colossal loss of financial potential, equivalent to funding India’s National Health Mission for three years (₹80,000 crore annually).

Causes of Unclaimed Wealth

The reasons behind unclaimed wealth are rooted in India’s socioeconomic, legal, and behavioral challenges:

1- Lack of Financial Literacy

Over 50% of rural Indians lack basic financial literacy, leading to forgotten accounts, policies, or investments.

Many fail to update nominations, with 30% of bank accounts and 25% of LIC policies lacking nominees.

2- Nomination and Succession Issues

Unclaimed dividends and insurance proceeds are often delayed due to the absence of nominated beneficiaries or ongoing legal disputes among heirs.

Benami properties, held under fictitious names, lack clear ownership, complicating recovery.

3- Migration and Digital Disconnect

India’s 139 million internal migrants (Census 2011) often relocate without updating bank or LIC details, contributing to 10% of dormant accounts.

Only 35% of Indians over 60 use digital banking, leaving older accounts unmonitored.

4- Death or Incapacitation

Families may be unaware of accounts, policies, or properties, especially if kept secret.

Elderly depositors (15% of India’s population by 2025) may forget assets due to cognitive decline.

5- Bank Mergers and Corporate Challenges

The 2019-20 merger of 10 PSBs caused confusion, with 5% of accounts becoming dormant.

After seven years, companies transfer unclaimed dividends to the Investor Education and Protection Fund (IEPF), though reclaiming these funds can be a lengthy and complicated process.

6- Benami Transactions

Benami properties often arise from tax evasion or illegal holdings, with owners intentionally obscuring ownership.

Lack of centralized property records hinders identification of rightful owners.

Regulatory Framework: Efforts to Curb the Crisis

India’s regulators have implemented measures to address unclaimed wealth, but gaps remain:

1- Depositor Education and Awareness Fund (DEAF)

Banks transfer unclaimed deposits to DEAF after 10 years. In 2024, DEAF held ₹78,213 crore, but only 5% of funds are reclaimed annually.

The RBI’s UDGAM portal (2023) allows users to search unclaimed deposits, recovering ₹1,000 crore by June 2025.

2- Investor Education and Protection Fund (IEPF)

Unclaimed dividends and shares are transferred to IEPF after seven years. As of July 2023, IEPF held ₹5,714 crore, with unclaimed shares valued at ₹82,199 crore.

The reclamation process requires extensive KYC and documentation, deterring 70% of claimants.

3- LIC and IRDAI Initiatives

LIC policyholders can check unclaimed amounts via the LIC website (https://licindia.in) using policy number, name, and PAN.

IRDAI mandates insurers to display unclaimed amounts above ₹1,000 and conduct media campaigns, reducing unclaimed policies by 15% since 2020.

Unclaimed LIC funds unclaimed for over 10 years are transferred to the Senior Citizen Welfare Fund (SCWF).

4- Benami Transactions (Prohibition) Act, 1988

The Income Tax Department has attached 621 benami properties worth ₹2,200 crore, with ongoing investigations targeting ₹50,000 crore in undetected assets.

Lack of a centralized property registry hinders progress.

5- EPFO Digitization

EPFO’s UMANG app helped 50,000 workers reclaim ₹3,000 crore in PF balances in 2024.

Despite these efforts, only 10% of unclaimed funds are reclaimed annually, reflecting systemic inefficiencies.

How Individuals Can Claim Unclaimed Wealth

Reclaiming unclaimed wealth is straightforward with the right steps and expert guidance from Ampuesto.in and Munafawala.in

1- Unclaimed Bank Deposits

Check: Use RBI’s UDGAM portal (https://udgam.rbi.org.in) with name, Aadhaar, or mobile number.

Support: Ampuesto.in assists with KYC documentation and tax compliance for reclaimed funds. Contact: https://ampuesto.in.

2- Unclaimed Dividends

Check: Search IEPF website (https://www.iepf.gov.in) with PAN or company name. Verify with Depository Participant (DP).

Support: Ampuesto streamlines IEPF claims and Munafawala help to reinvests reclaimed dividends for wealth growth.

3- Unclaimed LIC Policies

Check: Visit https://licindia.in (“Unclaimed Amounts”) with policy number, name, and PAN.

Support: Ampuesto.in ensures tax-efficient claims for LIC payouts.

4- Benami Properties

Check: Verify records at municipal/sub-registrar offices with Aadhaar or PAN.

Support: Ampuesto offers legal advisory for property claims and Munafawala help in investment planning post-recovery.

5- Other Assets

EPF: Use EPFO’s UMANG app or portal (https://www.epfindia.gov.in) with UAN and Aadhaar.

Support: Munafawala maximizes returns on reclaimed EPF and mutual funds.