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Have you ever lost something valuable, only to stumble upon it unexpectedly later on? Similarly, countless investments in India have been forgotten and scattered across various financial avenues, patiently waiting to be rediscovered by their rightful owners. These unclaimed funds, like hidden treasures, represent a substantial amount of wealth, estimated to be over 1 billion

From neglected bank accounts to overlooked insurance policies, these unclaimed investments silently yearn for their owners to return, while the accumulated amounts are channeled into welfare schemes aimed at providing financial assistance to those in need. 

The impact of unclaimed investments is not limited to the financial loss for the rightful owners. It can also lead to a negative impact on the overall economy. When money is lying unclaimed, it is not being put to productive use, which can result in a loss of economic activity. This unclaimed money could have been used for various purposes such as investment, consumption, and savings, which could have contributed to the growth of the economy.

But What happens to the Unclaimed Money?

Imagine embarking on a journey through a maze where every turn presents a different financial avenue. Unclaimed investments in India mirror this complex labyrinth, with forgotten funds scattered across various accounts. Inactive bank accounts, unclaimed maturity proceedings of insurance policies, neglected investments in mutual funds and stocks, and dormant provident fund accounts harbour these unclaimed deposits.

Unclaimed Investment in Mutual Funds and Stocks


Mutual funds and stocks are powerful investment tools for wealth creation. However, when dividends and unpaid money from these investments remain unclaimed for seven years or more, they find their way to the Investor Education and Protection Fund (IEPF). 

The IEPF functions as a custodian for unclaimed dividends, matured deposits, debentures, and other unclaimed funds. Investors and depositors seeking to reclaim their refunds can register themselves on the IEPF website, ensuring that their forgotten investments are returned to their rightful hands.

What happens to Dormant Bank Accounts?

Your bank account safeguards your hard-earned money. However, if an account remains inactive for a period of ten years or more, it becomes susceptible to being classified as unclaimed funds. In such cases, the money is transferred to the Depositor Education and Awareness Fund (DEAF). Picture DEAF as a sanctuary for forgotten funds, housing unclaimed amounts from numerous dormant accounts. To reclaim your money, one must navigate the intricacies of the banking system, armed with a duly filled claim form, deposit receipts, and Know Your Customer (KYC) documents.

What about Unclaimed Insurance Policies?

Insurance policies serve as a safety net, providing financial security during uncertain times. However, if the maturity proceeds of a policy remain unclaimed for ten years or more, they find their new home in the Senior Citizen’s Welfare Fund (SCWF). The SCWF acts as a guardian for these unclaimed funds, ensuring they are utilized for the welfare of senior citizens. Beneficiaries still have the opportunity to claim their money under their policies within 25 years from the date of transfer to the SCWF. After this period, the funds undergo ‘escheatment,’ rendering them irretrievable by the original account holder.

The Ripple Effect of Unclaimed Investments on Stakeholders

Unclaimed investments can have a ripple effect on other stakeholders in the financial system. For instance, unclaimed money in dormant bank accounts can affect the balance sheets of banks, leading to higher costs of operation and reduced profitability. Similarly, unclaimed dividends and unpaid money from mutual funds and stocks can impact the net asset values of these funds, which can affect the returns of other investors.

What Are the Safeguards Against Unclaimed Investments?

By adopting certain practices, we can minimize the risk of unclaimed investments and ensure that our hard-earned money is put to the right use and passed on to our chosen beneficiaries.

To safeguard your financial future and minimize the risk of unclaimed investments, follow these key steps:

  • Inform Loved Ones: Share information about your investments and finances with trusted family members or designated individuals to ensure awareness and assistance in managing your finances.
  • Designate Nominees: Nominate trustworthy individuals who can claim and manage your investments in case of your demise, ensuring a smooth transition of wealth.
  • Create a Will: Draft a comprehensive will that specifies how your assets, including investments, should be distributed, reducing the chances of unclaimed investments and potential disputes.
  • Update Financial Information: Regularly update your contact details, addresses, and changes in investment products or accounts to stay connected with financial institutions and minimize the risk of funds becoming unclaimed.

While taking proactive steps to secure our financial legacy is crucial, it is equally important to understand that claiming unclaimed funds can often be a tedious and time-consuming process. The process involves gathering relevant documentation, filling out claim forms, and undergoing verification procedures to establish ownership and authenticity. Different financial institutions and authorities may have specific requirements and procedures, adding to the complexity of the process.

Moreover, in the case of unclaimed investments transferred to welfare funds, beneficiaries may have limited timeframes to claim their money. Seeking assistance from professionals, such as legal advisors or financial experts, can also help simplify the process and ensure a higher chance of success in claiming unclaimed funds.

At Rurash Financials, our team will guide you through the entire process of claiming your unclaimed investments such as IEPF or DEAF claims, including filing the necessary paperwork and completing the necessary formalities. We will ensure that your claim is processed quickly and efficiently so that you can receive your shares as soon as possible.

Contact us today to know more about the recovery of forgotten or unclaimed investments or write to