Unclaimed Deposits Challenge:
Unclaimed deposits have long been a concern in the financial sector, with dormant accounts and unutilized funds often remaining untouched for extended periods. The FM highlighted the scale of this issue, emphasizing the need for innovative solutions.
Fintech’s Role:
The FM recognized the transformative potential of fintech in addressing this challenge. Fintech tools and platforms can provide efficient mechanisms for identifying unclaimed deposits and facilitating the process of returning these funds to their rightful heirs.
Customer Involvement:
Financial entities were encouraged to proactively engage their customers in the process. Customers were urged to nominate heirs or beneficiaries for their accounts, ensuring a clear and legally recognized path for transferring unclaimed deposits when necessary.
Regulatory Support:
The government is committed to providing the necessary regulatory framework to support these initiatives. It is expected that regulatory authorities will work closely with financial institutions to streamline the heir nomination process.
Digital Solutions:
The FM stressed the importance of digitization in this endeavor. Digital platforms can simplify the nomination process and enhance transparency, making it easier for customers to designate heirs.
Financial Inclusion:
The drive to tackle unclaimed deposits is also aligned with broader financial inclusion goals. Ensuring that dormant funds are returned to their rightful owners promotes financial well-being and access for all.
Industry Collaboration:
The Global Fintech Fest 2023 served as a platform for industry collaboration. Financial institutions, fintech startups, and regulatory bodies were encouraged to work together to develop efficient solutions for addressing unclaimed deposits.
This call to action by the Finance Minister signifies a significant step towards leveraging fintech for a socially responsible cause. It demonstrates the industry’s commitment to using technology and innovation to tackle long-standing challenges and promote financial inclusivity.
