Public Provident Fund (PPF), National Savings Certificate (NSC) and Senior Citizens’ Saving Scheme (SCSS) are some of the most popular fixed income instruments in the market. These are government-backed small savings schemes, few of which offer tax benefits.
Investors are spoilt for choice in investing and sometimes simply forget about these accounts which have long maturity periods. Government regulations require the relevant investment authorities to inform investors of their accounts, but over time a lot of account holders go untraceable as they change addresses or telephone numbers or both and fail to update the same with investment authorities.
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These unclaimed funds are moved to different government funds after a specific period of time. Account holders and policyholders can claim their money directly from these funds.
For instance, unclaimed money from bank fixed deposits is moved to the Depositor Education and Awareness Fund (DEAF), unclaimed insurance, PPF and EPF money is moved to the Senior Citizen’s Welfare Fund (SCWF), and unclaimed money from mutual funds and stocks is moved to the Investor Education and Protection Fund (IEPF).
Know where your unclaimed money is:
Senior Citizen’s Welfare Fund (SCWF)
SCW fund holds unclaimed deposits from PPF, post office savings accounts, EPF, RD accounts and other similar accounts. This Welfare Fund was formed in 2015 to utilise unclaimed funds lying idle for a productive cause and in general welfare of the society. Usually after maturity of an investment or after the tenure ends, before transferring the unclaimed money, the insurers contact the account holders/the nominee.
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In case of insurance money, for instance, if the money stays unclaimed at the end of 10 years from the due date, it is then transferred to the senior citizen welfare fund. Beneficiaries will be able to claim the money under their policies up to 25 years from the date of transfer of the same to the Senior Citizen’s Welfare Fund (SCWF).
However, if claims have not been made up to a period of 25 years after transfer to the SCW fund, such unclaimed amounts are transferred to the Central Government, in terms of Section 126 of the Finance Act, 2015. According to the Ministry of Finance, funds from the Senior Citizens Welfare Fund is utilized for the benefit of senior citizens.
How to find details of unclaimed small savings accounts on India Post website?
Visit the India Post website and click on ‘Banking and Remittance’. On this page select Post Office Savings Scheme. And then select Senior Citizen Welfare Fund.
You will get a list based on accounts such as Savings Bank, PPF, Kisan Vikas Patra etc., and once you click on the account type, you will find state-wise account details.
How does the welfare fund work?
According to the welfare fund rules, on a yearly basis, the institution (in this case the post office), shall identify unclaimed funds and make deposits to the Fund on or before March 1st of each year.
“The transfers by the Institutions shall be made on a net basis, namely, the unclaimed deposits minus the claims accepted in accordance with the law for the time being in force, of the accounts whose balances have already been transferred to the fund,” as per the rule.
