This was released by K V Kamath - the Chairman of NaBFID (National Bank for Financing Infrastructure and Development) and former Chairman of Infosys & ICICI Bank.
The spotlight paper is a part of a white paper titled; Reimagining Nominations: Making Succession Smoother and Simpler, which was released in 2021, with the same contributors as the white paper.
As per the paper, “the level of unclaimed funds at Rs. 1.60 lakh Crores, the tedious and time-consuming legal process, and the current situation brought on by Covid-19 signal that a deeper review and recast is necessary. Variation and inconsistent treatment of nominations among these seemingly identical categories of financial assets has emerged from different laws, periods of enactment, schemes designed under such laws, clarifications, or case laws. Certain variations are quite progressive, and certain provisions downright discriminatory. All asset classes, particularly financial assets, require review, reconciliation, and upgrading to incorporate the recommendations made in this whitepaper."
As per the press release, the study provides insight and makes suggestions about all retirement savings systems - EPF (incorporating EDLI, and EPS), Government EPF and PPF - for review and necessary reforms. It could be in the form of updating the definition of ‘family’ for making it non-discriminatory in certain cases or dispensing with linkage to ‘family’ altogether when making nominations in others.
“I compliment Pramod & ARIA for adding to the already published white paper - Reimagining Nominations. The importance can be understood in the context of the figure of Rs. 1.60 lakh crores of investors’ funds lying unclaimed. I am sure the government and regulatory authorities would study these recommendations and ease processes which would benefit citizens," said Kamath.
“The paper highlights the key developments of the retirement savings schemes over the last few decades and details the current state of affairs. A smoother and simpler succession process will provide quick transmission of assets. It will also relieve the courts of the unnecessary burden of contested and disputed succession matters," added Rao.
“The study was conducted by a team of experts to understand the current condition of these schemes, and ways to improve the efficiency of all stakeholders specially to reduce the figure of unclaimed assets" said Harsh Roongta, chairperson of ARIA.
