The Unclaimed Assets

There is a hidden gem in the vast field of personal finance that millions of people around the world are yet to discover. These treasures are assets that have not been claimed by their owners or beneficiaries we termed this as “Unclaimed Assets” and they include things like forgotten bank accounts, uncashed checks, dormant insurance policies, and invested money in Mutual Funds, Shares, Debenture. Many people are unaware that these unclaimed assets have significant value and can significantly affect one's financial situation. The purpose of this blog is to educate readers about the concept of unclaimed assets, spread awareness of the issue, and offer advice on how to locate and recover these assets.

Understanding Unclaimed Assets:

Unclaimed funds are money and other assets whose rightful owner cannot be located. Unclaimed funds are typically turned over to the government after a specific period of time has passed. To claim the funds or assets, the designated owner or beneficiary must file a claim

Importance of raising awareness about unclaimed assets:

Raising awareness about unclaimed assets is of paramount importance due to several reasons. First, unclaimed property represents a substantial sum of idle capital that could otherwise be used for society and personal advancement. Second, people and families might not be aware of the assets to which they are entitled, which results in lost financial possibilities. By raising awareness, individuals may take proactive measures to locate and reclaim their unclaimed property. Additionally, educating people about unclaimed property lessens the load on financial institutions and governments while fostering accountability and openness. In the end, raising people's awareness helps them find hidden riches and make wise financial choices.

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Factors contributing to assets becoming unclaimed

There are several factors that contribute to assets becoming unclaimed, in order to address the problem and advance practical solutions, it is essential to understand these factors.

·??????Lack of Knowledge: One important problem is that people are not aware of their rights to certain assets. People may forget about the assets and the family member of deceased person who have various financial assets may not aware about all his assets.

·??????Incomplete or Outdated Information: When people forget to update their contact information or address, financial institutions or businesses may have trouble locating them. The assets are therefore still unclaimed.

·??????Intestate Succession: When a person dies without leaving a legal will or other testamentary instrument, the process of transferring assets is more difficult. The assets may remain unclaimed until rightful heirs or beneficiaries are identified and the legal formalities are completed.

·??????Assets Forgotten or Abandoned: Over time, people may forget about or forsake certain assets they formerly held for a variety of causes. Inactive bank accounts, unpaid cheques, and unclaimed payouts are a few examples of this.

·??????Lost or Misplaced Documentation: It may be challenging to establish ownership of and access to assets if important documentation is misplaced or lost. Without the correct paperwork, people might not be aware of their legitimate claims.

Raising awareness, encouraging people to often update their information, supporting effective asset tracking systems, and expediting the unclaimed asset recovery process are all necessary components of a complete strategy to address these concerns. We can lessen the problem of unclaimed assets and assist people in accessing their legitimate money by taking care of these issues.

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Important Point to Focus:

·??????There are over 90,000 crores(approx.)?worth of unclaimed assets in India. As more people pass away, this number keeps on increasing. There is no exact number if we dig inside then definitely it would be more than this.

·??????Less than 5% of NRI & PIO took effort to filing claim for their Unclaimed Assets. According to a Ministry of External Affairs report, there are 32 million NRIs and PIOs.

·??????Every year 2.5 million (25 lakhs) Indians migrate overseas, which is the highest annual number of migrants in the world.

·??????Recently in February 2023, about Rs.35,000 crore unclaimed deposits were transferred to RBI by PSBs (Public Sector Banks) in respect of deposits which have not been operated for 10 years or more.

·??????These unclaimed deposits belong to 10.24 crore accounts.

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The Social Impact:

Unclaimed property has larger societal repercussions in addition to affecting individuals and their financial well-being. Unclaimed property can be recovered by people, who can then utilize the money for their own objectives, financial security, or even charitable causes. Unclaimed assets can contribute to economic growth by injecting money back into the system and promoting consumer spending.

The Importance of Financial Literacy:

The importance of financial knowledge must be emphasized in addition to recovering unclaimed property. By enhancing their personal financial knowledge, people may make better judgements, manage their assets more efficiently, and stay away from the problems that often result in unclaimed assets. People with financial literacy are better able to manage their money, keep correct records, update personal information, and make sure their estate plans are in order.

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Conclusion:

Unclaimed assets represent a vast pool of hidden wealth that can significantly impact an individuals' financial situations. By spreading knowledge and encouraging people to look for and claim these assets, we can enable people to take charge of their financial security. Never forget that it is never too late to find out what may rightfully be yours or your loved ones. Start your search now to uncover unclaimed assets potential and ensure a better financial future.

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