Finance ministry sets up panel to examine unclaimed amount in PPF, Small savings

The finance ministry has set up a committee led by RBI deputy governor HR Khan to assess the amount of unclaimed deposits in small savings scheme and recommend how it can be used to benefit senior citizens. The other members of the Committee would include secretary, department of posts, joint secretaries in the ministry of law and budget division of the finance ministry, deputy managing director of State Bank of India and executive director, Punjab National Bank.

The panel, which is expected to submit its report by December 31, 2014 would also suggest whether the unclaimed deposit should come to the government or be kept in a separate account. The finance ministry has also asked the panel to suggest any changes required in the legal framework to recover these funds.

In his maiden budget speech Finance Minister Arun Jaitley had said that a large amount of money is estimated to be lying as unclaimed amounts with Public Provident Fund (PPF), Post Office, saving schemes. Although there is no official estimate to ascertain the unclaimed amounts in PPF and small saving schemes, it is believed that the amount could run into hundreds of crores of rupees. The minister had said that these are mostly out of investments belonging to the senior citizens and on their demise, remain unclaimed for want of relevant payment instructions. The panel will recommend how the unclaimed amount can be used to protect and further financial interests of the senior citizens.