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SC seeks Centre, RBI replies on plea for portal to track unclaimed financial assets
The notice came on a petition, that has sought the creation of a centralised mechanism to help citizens identify and recover their scattered or dormant financial assets
The Supreme Court on Monday sought responses from the Union government and a range of financial regulators on a public interest petition seeking the creation of a centralised digital platform where individuals can view all their financial assets -- active, dormant, or unclaimed, across entities regulated by the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority of India (IRDAI).
A bench of justices Vikram Nath and Sandeep Mehta issued notices to the Union of India, Ministry of Consumer Affairs, RBI, SEBI, IRDAI, National Savings Institute, Employees Provident Fund Organisation (EPFO), and the Pension Fund Regulatory and Development Authority (PFRDA).
The notice came on a petition filed by social activist Aakash Goel, who has sought the creation of a centralised mechanism to help citizens identify and recover their scattered or dormant financial assets.
Senior counsel Mukta Gupta, appearing for the petitioner, submitted that despite the Delhi High Court recognising the significance of the issue earlier this year, the authorities had taken no action on his representation.
“The Delhi High Court had acknowledged the gravity of the problem but left it to the authorities to consider a policy. However, nothing has moved since then, and the funds of millions of ordinary citizens remain trapped across banks, insurance companies, mutual funds and pension schemes,” Gupta told the court.
While issuing notice, the Supreme Court asked the Centre and financial regulators to respond within four weeks and listed the matter for hearing after replies are filed.
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In January, a division bench of the Delhi High Court had observed that the problem of dormant and unclaimed assets was “a serious concern affecting millions of depositors and investors”, even as it refrained from judicial intervention, holding that the matter was better suited for executive and policy consideration.
The plea cited startling data -- over 9.22 crore inoperative bank accounts across the country, with an average balance of ₹3,918 per account, and unclaimed financial assets worth more than ₹3.5 lakh crore lying scattered across banks, mutual funds, insurance companies, provident funds, and small savings schemes.
According to the petition, many of these funds belong to individuals who have passed away, leaving legal heirs unaware of their existence due to missing nominee details or lack of a common interface to trace such assets. The petitioner contends that this has resulted in “trapped wealth” that neither benefits the rightful owners nor contributes effectively to the economy.
The petition further drew attention to three major statutory funds created to manage such unclaimed money: Depositor Education and Awareness Fund (DEAF) under the RBI, which holds unclaimed bank deposits; Investor Education and Protection Fund (IEPF) under the Ministry of Corporate Affairs, which collects unclaimed dividends and shares; and Senior Citizens Welfare Fund (SCWF) under the Finance Act, 2015, which receives unclaimed insurance and small savings proceeds.
Together, the DEAF and IEPF hold over ₹1.6 lakh crore, an amount the plea pointed out is almost three times India’s health budget and double the education budget, underscoring the scale of dormant wealth that remains largely untapped.
The petition contended that the absence of a unified registry violates citizens’ rights under Articles 14 and 21 of the Constitution, as it denies transparency, equal treatment, and timely access to one’s own property. The plea urges the creation of a secure, Aadhaar-linked, e-KYC-based portal that would consolidate all financial assets held by individuals and their nominees across regulated entities.
It also sought directions for all financial institutions to mandatorily capture nominee details for every asset and to establish a time-bound grievance redressal mechanism for claimants.
