10 Aug 2012

Policy for Unclaimed Fund

As per the information furnished by Insurance Regulatory and Development Authority (IRDA) and Reserve Bank of India (RBI) , the amount of unclaimed amount for insurance industry and Fixed deposits by all Scheduled Commercial Banks are as below: 
i) Unclaimed amount in Insurance sector ` 3,037.46 crore (as on 31.03.2012). ii) Unclaimed funds in Fixed Deposit ` 425.89 crore (as on 31.12.2011). 
The Ministry of Labour and Employment has informed that there is no unclaimed fund lying with Employees’
Provident Fund Organization. However, there are certain accounts which are classified as Inoperative Accounts and all such accounts have a definite claimant. For the year 2011-12 an amount of ` 22,636.57 crore (provisional) is lying in Inoperative Accounts. The Government has not chalked out any policy to utilize this money. However, (i) In respect of unclaimed amount in insurance industry, IRDA has advised the insurers that unclaimed sum would not be appropriated/written back. 
(ii) In respect of unclaimed funds in Fixed Deposits, the Government has introduced the Banking Laws (Amendment) Bill, 2011 wherein provision has been made for the establishment of a “Depositor Education and Awareness Fund” to take over inoperative deposit accounts which have not been claimed or operated for a period of 10 years or more. 
(iii) The Ministry of Labour and Employment has further informed that the amount lying in the Inoperative Account under Employees’ Provident Fund Organization cannot be utilized except for the settlement of the members’ account. 
This was stated by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today. 

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