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regular-article-logo Tuesday, 21 May 2024

Finance Minister urges banks to promote heir nomination to reduce unclaimed money

The banking system alone has over Rs 35,000 crore of unclaimed deposits, while the overall quantum of the unclaimed money is said to be more than Rs 1 lakh crore.

PTI Mumbai Published 05.09.23, 01:47 PM
Nirmala Sitharaman

Nirmala Sitharaman File Picture

Union Finance Minister Nirmala Sitharaman on Tuesday asked banks and financial institutions to ensure that their customers nominate heirs, which can help reduce the quantum of unclaimed money.

"I want banking system, the financial ecosystem (including) the mutual funds, stock markets... everybody to keep in mind that when someone deals with his (customer's) money, the organisations will have to think about the future and ensure that they (customers) nominate their heir, give the name and address," Sitharaman said at the Global Fintech Fest (GFF) here.

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As per a report, the banking system alone has over Rs 35,000 crore of unclaimed deposits, while the overall quantum of the unclaimed money is said to be more than Rs 1 lakh crore.

The finance minister also said that it is essential to build a responsible financial ecosystem, and added that one laggard can cause a disruption.

Sitharaman also said that tax havens and round tripping of money are a threat to responsible financial ecosystem.

She asked fintech companies to invest in cybersecurity and said that trust is very important.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.

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