FM urges financial institutions to encourage customers to nominate heirs

Union Finance Minister Nirmala Sitharaman made a compelling call to banks and financial institutions on Tuesday, urging them to prioritize the nomination of heirs by their customers. Emphasizing the importance of this practice in reducing unclaimed funds, she delivered this message during the Global Fintech Fest (GFF).

Sitharaman remarked, "I want the entire banking system and the broader financial ecosystem, including mutual funds and stock markets, to make it a standard procedure for customers to designate their heirs by providing their names and addresses when handling their finances."

According to reports, the banking sector alone holds over Rs 35,000 crore in unclaimed deposits, with the total amount of unclaimed assets estimated to exceed Rs 1 lakh crore.

The finance minister underscored the necessity of constructing a responsible financial ecosystem and highlighted that even a single entity failing to adhere to responsible practices could lead to disruptions.

Sitharaman also expressed concerns about tax havens and the illicit movement of funds, which pose threats to a responsible financial system. She urged fintech companies to invest in robust cybersecurity measures and emphasized the critical role of trust in financial transactions.