How to reclaim your share of Rs 2L-cr in unclaimed assets

The reality is that many people have substantial savings and assets, but if something happens to them, no one can access those funds. You might have money in the bank and valuable assets, but without access, even paying for basic care becomes a challenge. This issue is particularly pressing for those who have significant wealth yet find themselves unable to utilize it in times of need

KV Kamath, former ICICI Bank chairman and current non-executive chairman of Jio Financial Services, officially launched a report titled Challenges in Transmission of Assets to Nominees and Legal Heirs on August 28. The report, published by Moneylife Foundation, highlights the alarming Rs 2 lakh crore in unclaimed assets in India and provides essential guidance on how to reclaim these funds. The comprehensive study offers valuable insights and recommendations on navigating the complex process of asset transmission, addressing a critical financial issue in the country. Bizz Buzz engaged with experts to explore this pressing concern further.

“I’ve reviewed the report in detail, and what stood out to me is how accurately it identifies the challenges. Many of these hurdles are ones I’ve personally encountered, so I can relate to them. It’s particularly striking because, as someone who considers themselves informed and up-to-date, even I overlooked steps that could have helped me claim what was rightfully mine. This made me realize the magnitude of difficulties faced by those in smaller towns, who may lack the access and technological resources we have in urban areas,” KV Kamath said.

In my case, even with guidance, it took over a year to recover what was locked up. You can imagine how much longer it might take for someone without similar support. The first challenge is simply becoming aware that something is owed to you, which can take years. Then comes the lengthy process of claiming it, which itself took a year for me, he said.

This experience made me realize the need to bring these issues to public attention. Previously, efforts were made to alert regulators, and we did see some traction in response. However, this report goes further by methodically outlining the process and challenges involved, providing a framework for action. It’s not just about highlighting the issues; it offers actionable suggestions for regulators and the government to implement,

he added.

Harsh Roongta, Founder, Fee Only Investment Advisers said that people often have an inexplicable reluctance to write wills, offering various excuses to avoid it. Interestingly, this hesitation doesn’t seem to apply when it comes to making asset-specific nominations.

If we could leverage this mental acceptance of asset-wise nominations through legal reforms, we could effectively convert these nominations into a form of asset-specific wills. At the same time, if someone prefers to create a comprehensive will, that should take precedence over the asset-wise wills, but we should allow for the option of asset-specific wills as well, Roongta added.

Adv Mathew Joby said, “Adult guardianship is an important issue that needs more attention. From personal experiences and conversations with friends and colleagues, I’ve seen how age-related challenges can affect even simple tasks, like signing a document. For instance, an elderly person might struggle with a shaky hand, making it difficult to validate something as basic as a life certificate through video. I remember my mother facing this—her head would shake, and the video wouldn’t accept it. My son had to physically support her head just to get it done. But why should we have to go to such lengths, Joby asked.

It’s their wealth, their hard-earned savings. The way we approach the management of senior citizens' wealth needs to be rethought. The current system isn’t designed to accommodate the unique challenges they face, Joby added.

That’s why we included adult guardianship in our study, even though it was almost an afterthought. The reality is that many people have substantial savings and assets, but if something happens to them, no one can access those funds. You might have money in the bank and valuable assets, but without access, even paying for basic care becomes a challenge. This issue is particularly pressing for those who have significant wealth yet find themselves unable to utilize it in times of need.