FM asks financial entities to ensure customers nominate heirs

PTI, Sep 5, 2023, 11:45 AM IST

Image source: X (Formerly Twitter)

New Delhi: 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.

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.