As per information presented by government, more than Rs. 32,000 crore is lying as unclaimed deposits with banks and insurance companies.
Any account which has not been operated for 10 years is considered as unclaimed account and the amount deposited is considered as unclaimed deposit or amount. Finance Minister Nirmala Sitharaman mentioned in a written response that unclaimed amount with life insurers as of September 30, 2018 is Rs. 16,887.66 crore and non-life insurance companies hold Rs. 989.62 crore as unclaimed deposits.
In accordance with the provisions brought in by the Finance Act, 2015, the Centre notified the Senior Citizens’ Welfare Fund (SCWF) Rules, 2015. It was amended during next two years and made applicable to insurers. Entities having unclaimed amounts for more than 10 years are required to transfer the amounts to the SCWF on or before March 1 every year. The SCWF is utilised for schemes promoting the welfare of senior citizens.
