In a major move to safeguard citizens’ unclaimed financial assets, the Supreme Court of India on Monday sought responses from top financial regulators — the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority of India (IRDAI) — over a petition calling for a unified framework to trace and return Rs 3.5 lakh crore stuck in dormant or unclaimed accounts.
The petition, filed by advocate and social activist Aakash Goel, urged the creation of a centralised tracking and reconciliation system to help citizens locate their long-forgotten or unclaimed assets — from old bank accounts to lapsed insurance policies and unpaid dividends.
A bench led by Justice Vikram Nath also issued notices to several key institutions, including the National Savings Institute, Employees’ Provident Fund Organisation (EPFO), Pension Fund Regulatory and Development Authority (PFRDA), and the Ministries of Consumer Affairs and Food and Public Distribution.
The Petition: ‘Trapped Wealth’ of Ordinary Citizens
According to Goel’s plea, over 9.22 crore dormant bank accounts exist in India, each holding an average balance of Rs 3,918. Combined with unclaimed insurance proceeds, mutual fund units, matured fixed deposits, and unpaid provident funds, these add up to a staggering Rs 3.5 lakh crore lying unutilised.
“This is trapped wealth — neither benefiting the rightful owners nor contributing to the economy,” Goel argued, stressing the need for a national-level solution.
The absence of nominee details, digital reconciliation, and inter-regulator coordination has made it nearly impossible for families of deceased individuals to recover their rightful money.
Senior advocate Mukta Gupta, representing the petitioner, told the court that despite the Delhi High Court previously acknowledging the issue’s seriousness, little progress has been made.
“The funds of millions of ordinary citizens remain stuck across banks and insurance companies,” Gupta said.
What the Petition Seeks
The petitioner has requested the Supreme Court to direct financial regulators and ministries to:
1. Mandate nominee details for all financial accounts and assets.
2. Launch a unified national portal to allow citizens to track all their financial holdings — active or dormant.
3. Identify deceased account holders through government coordination and notify their legal heirs.
4. Develop an integrated digital system between RBI, SEBI, IRDAI, and other entities to facilitate easy refunds and asset transfers.
Why It Matters
If implemented, this initiative could be one of India’s biggest financial reforms, ensuring transparency, accountability, and justice for millions. Experts say that unlocking these unclaimed funds will not only empower citizens but also release massive idle capital into the economy.
The Supreme Court’s intervention marks a crucial step towards bridging the gap between regulators and citizens — potentially turning dormant wealth into active economic strength.
