FM URGES CUSTOMERS T0 NOMINATE HEIRS FOR FINTECH ACCOUNTS

FM recognized the diverse threats confronting the financial ecosystem, encompassing the abuse of tax havens, money laundering by criminal organizations, and tax evasion

Finance Minister Nirmala Sitharaman has called upon banks and financial institutions to take proactive measures in ensuring their customers update their nominees, addressing the persistent issue of unclaimed funds in the future. The minister made this appeal during her keynote speech at the Global Fintech Fest (GFF) event, where she stressed the paramount importance of responsible financial practices.

Unclaimed money within the Indian banking system currently stands at an alarming figure, exceeding Rs 35,000 crore. The overall quantum of unclaimed funds, comprising various financial instruments, is estimated to be more than Rs 1 lakh crore. In a bid to streamline the process of claiming these unutilized resources, the Reserve Bank of India (RBI) recently launched a centralized web portal named UDGAM (Unclaimed Deposits - Gateway to Access information). This portal is intended to facilitate the search for and claiming of unclaimed deposits across multiple banks, thus alleviating the difficulties faced by individuals and families trying to access these funds.

Minister Sitharaman’s call to action is centered on the idea that organizations within the financial ecosystem, including banks, should actively encourage their customers to nominate their heirs and provide their names and addresses. This initiative aims to ensure that individuals’ financial assets do not languish as unclaimed funds for extended periods, ultimately benefiting their intended beneficiaries.