MM TAX CLUB

Gandhinagar, October 4, 2025:
Union Finance Minister Smt. Nirmala Sitharaman today launched the nationwide financial awareness campaign “आपकी पूँजी, आपका अधिकार” in Gandhinagar, Gujarat. The initiative aims to help citizens trace and reclaim their unclaimed financial assets—including deposits, insurance proceeds, dividends, mutual fund balances, and pensions—that often remain forgotten in various financial institutions.

???? A Campaign with a Message of Trust and Empowerment

While launching the campaign, the Finance Minister emphasized that “Unclaimed deposits are not mere entries on paper; they represent the hard-earned savings of ordinary families.”
She highlighted that these funds can make a real difference in people’s lives—supporting education, healthcare, and financial security.

Smt. Sitharaman outlined the “3As Strategy” — Awareness, Accessibility, and Action — as the guiding framework for this campaign:

• Awareness – Informing citizens on how to identify and claim unclaimed assets.

• Accessibility – Simplifying processes through digital tools and district-level outreach.

• Action – Ensuring time-bound, transparent, and fair claim settlements.

“These three pillars,” she said, “will bridge the gap between citizens and financial institutions, ensuring that every rupee returns to its rightful owner.”

???? Bringing Institutions and Citizens Closer

The Finance Minister acknowledged the efforts of regional rural banks like Gujarat Gramin Bank and other financial institutions for their proactive participation in KYC and re-KYC drives. Such initiatives, she noted, have strengthened the link between citizens and the formal financial system — a foundation on which this new campaign will build further.

Smt. Sitharaman also handed over certificates to beneficiaries who successfully reclaimed their unclaimed deposits, symbolizing the real impact this campaign aims to create across the nation.

???? Voices of Support

Union Home Minister Shri Amit Shah, in his message, praised the initiative as a collective effort to strengthen public trust, dignity, and empowerment.
He encouraged citizens to take part actively, highlighting that the campaign is not only about money but also about restoring people’s connection to their financial rights.

State Finance Minister of Gujarat, Shri Kanubhai Desai, expressed pride in the campaign being launched from Gujarat and assured full state support. “Unclaimed deposits,” he said, “are useful for education, empowerment, and meeting essential financial needs.”

Secretary, Department of Financial Services (DFS), Shri M. Nagaraju, shared key figures to underline the scale of unclaimed funds:

• Over ₹75,000 crore of unclaimed deposits have been transferred to RBI’s Depositor Education and Awareness Fund.

• ₹13,800 crore in unclaimed insurance proceeds.

• ₹3,000 crore in unclaimed mutual fund balances.

• ₹9,000 crore in unpaid dividends.

• Around 172 crore shares transferred to the Investor Education and Protection Fund.

He stressed the need for quick and fair claim processing, ensuring that citizens “walk away with clarity and confidence.”

???? Reaching Every Citizen, in Every District

From October to December 2025, the campaign will cover all districts across India.
Digital demonstrations and local helpdesks will be set up to guide people through the process of tracing and claiming their assets.

The campaign is being coordinated by the Department of Financial Services (DFS), Ministry of Finance, in collaboration with:

• RBI (Reserve Bank of India)

• SEBI (Securities and Exchange Board of India)

• IRDAI (Insurance Regulatory and Development Authority of India)

• PFRDA (Pension Fund Regulatory and Development Authority)

• IEPFA (Investor Education and Protection Fund Authority)
  along with banks, insurance companies, mutual fund houses, and pension institutions.

???? A Step Toward Meaningful Financial Inclusion

This initiative builds on India’s major financial inclusion reforms—Jan Dhan Yojana, UPI, and Direct Benefit Transfers—by ensuring that citizens not only gain access to financial services but also reclaim what rightfully belongs to them.

With “आपकी पूँजी, आपका अधिकार,” the Government of India reaffirms its vision of a transparent, inclusive, and citizen-centric financial system, where every household can access, manage, and benefit from its rightful wealth.

The Ministry of Finance, Government of India, had notified the Unified Pension Scheme (UPS) for eligible Central Government employees through Notification No. F. No. FX-1/3/2024-PR dated 24 January 2025. As part of this initiative, the Department of Financial Services (DFS) has now underlined a crucial deadline – 30 September 2025 will be the last date for eligible employees and past retirees under the National Pension System (NPS) to exercise their option to move to UPS.

This is a one-time opportunity. Employees who do not exercise their option by the deadline will remain under NPS by default, and will not be able to shift to UPS thereafter.

One-Time, One-Way Switch: UPS back to NPS

Adding further flexibility, DFS has also issued Office Memorandum No. 1/3/2024-PR dated 25 August 2025, which allows a one-time, one-way switch for Central Government employees who have already opted for UPS. Under specific conditions, they can revert to NPS.

Key conditions for switching from UPS to NPS:

1. The switch can be exercised only once and employees cannot revert to UPS again.

2. The option must be given at least one year before superannuation or three months before voluntary retirement, whichever is earlier.

3. The switch facility will not be available in cases of removal, dismissal, compulsory retirement as a penalty, or where disciplinary proceedings are pending/under consideration.

4. Those who do not opt within the stipulated time will continue under UPS by default.

What this means for employees

This move ensures that Central Government employees have adequate flexibility in planning their post-retirement financial security. While the UPS offers a new framework, employees who may later wish to return to the market-linked NPS can now do so – but only once, and within the given conditions.

• Employees under NPS must take a decision before 30 September 2025 if they wish to move to UPS.

• Employees who have already chosen UPS have an added safeguard with the one-way switch to NPS, ensuring they are not permanently locked into one scheme.

???? Action Point for Employees: If you are eligible, do not wait until the last moment. Review your retirement goals, consult with financial advisors if required, and exercise your option well before the deadline.

This is a significant decision that will shape your retirement security – make sure you choose wisely.

The Pension Fund Regulatory and Development Authority (PFRDA) has announced an important update regarding the Unified Pension Scheme (UPS).

The Ministry of Finance, Government of India, had earlier notified the Unified Pension Scheme (UPS) for eligible Central Government employees vide Notification No. F. No. FX-1/3/2024-PR dated 24.01.2025.

With the deadline to exercise the option to switch to UPS fast approaching — 30th September 2025 — PFRDA has clarified that:

???? In case a subscriber is unable to submit the UPS request online through the CRA system due to technical issues or unavailability of the platform, they will still have the option to submit a physical application form.

???? The duly filled physical form must be submitted to the concerned Nodal Office on or before the due date.

???? These requests will be processed by the Nodal Offices as per the prescribed procedure.

⚠️ Important Note:
The last date for eligible employees and past retirees under NPS to opt for UPS remains 30th September 2025.

This relaxation ensures that no eligible subscriber misses out on the opportunity to switch to UPS just because of online system issues.

The Ministry of Finance’s Department of Financial Services (DFS), in collaboration with the Indian Banks’ Association (IBA), recently organized a high-level meeting on “Empowering MSMEs: Opportunities, Challenges and Way Forward” in Mumbai. The session was chaired by the Secretary, DFS, and saw active participation from senior leaders of SIDBI, Public Sector Banks, major Private Sector Banks, IBA, and MSME industry associations from across the country.

MSMEs – The Backbone of India’s Economy

In his keynote address, the Secretary, DFS, highlighted the pivotal role of Micro, Small and Medium Enterprises (MSMEs) in India’s economic growth. MSMEs account for nearly 30% of India’s GDP and contribute to over 45% of the nation’s exports. More importantly, they drive grassroots economic transformation by promoting entrepreneurship, generating employment, and enabling inclusive growth.

“MSMEs are the backbone of the Indian and global economy. They reflect India’s strong entrepreneurial spirit, spanning from traditional industries to modern technology sectors. Empowering them with better access to finance, technology, and markets is key to building a self-reliant and globally competitive India,” the Secretary said.

He also underlined the importance of the sector in achieving the vision of Viksit Bharat 2047, where MSMEs are expected to play a central role in job creation, innovation, and sustainable growth.

Key Areas of Discussion

The deliberations during the meeting centered around both immediate action points and long-term strategies to strengthen MSMEs. Some of the critical themes discussed included:

• Shift towards digital loans – building faster, simpler, and more transparent lending processes.

• Cash flow-based underwriting – moving beyond collateral-heavy models to support genuine business growth.

• Addressing delayed payments – ensuring timely cash flows to safeguard small businesses.

• Improving MSME awareness and data quality – enabling informed decisions and effective policy-making.

• Enhancing access to finance – designing innovative financial products and schemes.

A presentation on Government of India initiatives for MSMEs was also shared, reinforcing ongoing policy efforts to support the sector.

The Road Ahead

The meeting concluded with a shared vision – to create a robust, resilient, and globally competitive MSME sector. By aligning efforts of government bodies, industry stakeholders, and financial institutions, India can unlock new opportunities for small businesses and ensure their central role in shaping the country’s growth story.

As India looks towards Viksit Bharat 2047, strengthening MSMEs will not just be an economic priority, but also a social one—fueling innovation, fostering entrepreneurship, and creating millions of livelihoods across the nation.