Zerodha’s Nitin Kamath has a solution for ₹80,000 crore of unclaimed money

For this reason, Kamath said that Zerodha is adding an alert feature, which will ‘notify the nominees if the accounts are inoperative and they are not reKYC.’ Zerodha will also enable customers to create and change nominations online, as most people miss out on adding a nominee, partly because adding a nominee was an offline process.

Kamath also expressed hope on Twitter that soon banks and other online brokerages will follow such facility and will be able to reduce the unclaimed amount.

Earlier today, Zerodha enabled the facility for investors to file or change nominations online on its platform. If the client’s account becomes inactive due to lack of activity for more than a year, the brokerage will contact the nominees over SMS and email and inform them about the existence of the account, the company said in a statement. said in a statement.

“While demat account opening went digital in 2016 (using Aadhaar e-sign), adding nominees has so far been a physical process. This is because the process of nomination as defined by the MCA mandates a physical form and the collection of multiple witness signatures. The rule around this has changed recently, SEBI has given an option to add 3 nominees completely online to your trading and demat account using e-sign.

Why should nominees be cautious?

Quoting a recent survey, Zerodha said that corpus of more than Rs. 82,000 crores are lying in unclaimed deposits in India. This is a conservative estimate and includes:

Unclaimed Provident Fund Accounts – Rs. 26,497 crore

-Unclaimed bank accounts – Rs. 18,381 crore

-Inoperative Mutual Fund Accounts – Rs. 17,880 crore

-Unclaimed LIC Policy – Rs. 15,167 crore

-Mature Fixed Deposit – Rs. 4,820 crore

-Unclaimed Dividend – Rs. 4,100 crore

“These are unclaimed, most likely because the nominees are not aware of the existence of these assets. We expect the alert feature to serve as a backup for all our clients in case of any force majeure.”

How to add nominee on Zerodha:

You need to link Aadhaar with your mobile number to receive OTP and e-sign.

You have to upload the proof of identity of the nominee in PDF format. For this you can convert JPEG image to PDF.

-Once you complete the above process, it may take up to 48 hours to add the nominee to the account. You will receive an email from Zeroha as well as CDSL (Depository).

Customers can add up to three nominees online and this nomination covers all your investments in Zerodha including stocks, mutual funds and bonds, the company added.

According to IIFL Wealth and Hurun India’s 40 and Under Self-Made Rich List 2020, Zerodha co-founders Nitin Kamath and Nikhil Kamath are the richest self-made billionaires under 40 in India. Nitin and Nikhil Kamath are the youngest richest entrepreneurs. With around 40 properties in India ₹24,000 crores.