India’s financial system has long struggled with unclaimed assets running into thousands of crores, with family members often unaware of their deceased relatives’ investments. This happens when dividends go unclaimed, letters return undelivered, or when nominees are simply unaware of existing accounts.
To solve this, the Securities and Exchange Board of India (SEBI) has partnered with DigiLocker, the government’s digital document wallet, to provide smooth access to financial holdings after an investor’s demise.
How Will DigiLocker Help Nominees?
With this integration, investors can now appoint "Data Access Nominees" within DigiLocker. In the event of their passing, these nominees will get read-only access to the deceased’s financial assets, such as:
- Mutual fund holdings
- Demat account statements
- Consolidated Account Statements (CAS)
This removes the guesswork and bureaucratic delays that often prevent families from claiming financial assets.
How the Process Works?
If an investor has nominated someone in their DigiLocker account, the KYC Registration Agencies (KRAs) will verify their demise through official databases and notify the nominee via SMS and email. Once informed, the nominee can initiate the process of claiming the financial assets through AMCs for mutual funds or depository participants for shares.
A Secure Yet Efficient Move
SEBI has limited nominee access to read-only mode, ensuring no unauthorized transactions occur. Experts believe this step will not only reduce unclaimed assets but also simplify financial planning for families.
With this seamless digital transition, investors and their families can now stay connected to their wealth without the fear of losing access to their assets.
