The Technology Component in Unclaimed Assets Recovery: Indias Digital Initiative

Internet Search Facilities

Among the most powerful technological advancements is the application of online search facilities. The Securities and Exchange Board of India (SEBI) mandated stock exchanges as well as brokerages to provide simple online search facilities on their websites.

The Online Search Facilities Allow Investors To:

• Check if unclaimed funds/securities are located in their names
• Search across various parameters like PAN, Aadhaar, or folios
• Obtain details on inactive accounts and dormant investments

This online method minimizes the effort and time involved in finding unclaimed assets, making it easier for the common investor.

Centralized Databases

The creation of centralized databases has significantly revolutionized the tracing of unclaimed assets.

Some of the notable features are:

• Up-to-date information on the status of unclaimed assets
• Integration with various financial institutions for a general overview
• Secure access controls to protect sensitive financial information

Automated Notification Systems

Through technology, banks and regulatory bodies have developed computerized notification systems.

• Remind investors from time to time of their inactive accounts
• Notify nominees and legal beneficiaries about unclaimed funds of deceased investors
• Provide reports on the progress of ongoing claim processes

By actively seeking out possible claimants, such systems drastically reduce the growth of unclaimed assets.

Digital KYC and Verification Procedures

Digitization of Know Your Customer (KYC) processes has helped facilitate smoother verification of claimants.

• Aadhaar and other online identity-based e-KYC
• Remote authentication via video KYC
• Integration with government databases to accelerate verification of rightful heirs

These computerized procedures not only speed up claim processing but also enhance security by preventing fraudulent claims.

Asset Tracking with Blockchain Technology

Blockchain technology has the potential to transform tracking of unclaimed assets.

• Developing unalterable records of financial transactions
• Encouraging transparency in the movement of funds and securities
• Ensuring faster and more secure recovery of funds

Asset Management Mobile Apps

Financial institutions and regulators have developed mobile apps for asset management.

• Monitor investments in real-time
• Receive instant alerts on account activity
• Initiate claim processes for abandoned assets from mobile devices

AI-Based Asset Matching

Artificial Intelligence (AI) is used to match potential claimants with unclaimed assets effectively.

• Analyze vast amounts of data to identify patterns and matches
• Predict which accounts are likely to remain dormant
• Recommend measures to prevent assets from becoming unclaimed

Impact on Unclaimed Assets Recovery

The intersection of these technological advances has driven unclaimed asset recovery in India:

• Enhanced Efficiency: Reduced claim processing times.
• Improved Accuracy: Automated systems eliminate human errors.
• Greater Transparency: Investors have clear visibility into their claims and assets.
• Increased Accessibility: Technology simplifies tracking and retrieval of assets for all investors.

As of January 2025, unclaimed client funds total ₹323 crore, with unclaimed securities worth ₹182 crore. This highlights the necessity for technological interventions to overcome this financial challenge.

Conclusion

Indias financial industrys technological push for recovering unclaimed assets is a significant step towards greater investor protection and financial inclusion. As technology advances, new and innovative ways will emerge to further streamline asset recovery. Investors should stay informed and periodically use these online platforms to check for unclaimed assets.