Unclaimed Deposits in India: Over ₹45,000 Crore Transferred to RBI’s DEA Fund

The Finance Ministry informed the Lok Sabha that public sector banks (PSBs) have transferred more than ₹45,000 crore worth of unclaimed deposits to the Depositor Education and Awareness (DEA) Fund between 2019-20 and 2024-25 (till December 31, 2024). The Reserve Bank of India (RBI) manages this fund under the Depositor Education and Awareness Fund Scheme, 2014.

Understanding Unclaimed Deposits

Definition and Classification

Unclaimed deposits refer to balances in savings and current accounts that remain inactive for 10 years, or term deposits that have not been claimed within 10 years from their date of maturity. When these accounts remain unclaimed for this period, banks transfer the funds to the RBI’s DEA Fund.

Process of Transfer to the DEA Fund

• Identification of Inactive Accounts: Banks identify accounts that have remained dormant for 10 years.
• Declaration as Unclaimed: If no transactions occur in the specified period, they are classified as unclaimed deposits.
• Transfer to the DEA Fund: The Reserve Bank of India (RBI) maintains the DEA Fund, where these unclaimed deposits are pooled.

Can Depositors Reclaim Their Funds?

Yes, depositors or their legal heirs can claim unclaimed deposits from their respective banks. The process includes:

• Submitting a claim to the bank where the deposit was held.
• The bank verifies the claim and, if approved, processes the repayment, including applicable interest for interest-bearing accounts.
• The bank then lodges a claim with the RBI for reimbursement from the DEA Fund.

RBI’s Initiative to Track Unclaimed Deposits – UDGAM Portal

To streamline the process of identifying and reclaiming unclaimed deposits, the Reserve Bank of India launched the UDGAM portal (Unclaimed Deposits – Gateway to Access Information) in 2023.

Features of the UDGAM Portal:

• A centralized platform that allows users to search unclaimed deposits/accounts across multiple banks.
• Currently, 30 banks are part of the portal, covering about 90% of unclaimed deposits (by value) in the DEA Fund.
• Efforts are being made to include other banks in the portal to increase accessibility.
• Users must register on the portal to check for any unclaimed deposits in their name.

Government and RBI’s Efforts to Reduce Unclaimed Deposits

1. Awareness Campaigns: RBI and banks regularly educate customers on keeping their accounts active.
2. Simplified Claim Process: Efforts are being made to simplify and expedite the process of claiming funds from the DEA Fund.
3. Expansion of UDGAM Portal: RBI aims to include all banks in the UDGAM portal to ensure complete transparency and accessibility.
4. Banks’ Proactive Role: Banks are instructed to contact customers with dormant accounts before declaring them unclaimed.

Summary of the News

Aspect	Details
Total Unclaimed Deposits	Over ₹45,000 crore
Period Covered	2019-20 to 2024-25 (till December 31, 2024)
Transferred to	Depositor Education and Awareness (DEA) Fund managed by RBI
Definition of Unclaimed Deposits	Savings and current accounts inactive for 10 years or term deposits not claimed within 10 years of maturity
Process of Claiming Funds	Depositors/legal heirs apply to respective banks, which then verify and process the repayment. Banks claim reimbursement from RBI.
RBI’s Initiative	UDGAM Portal launched in 2023 to help users search for unclaimed deposits.
Banks on UDGAM	30 banks covering 90% of unclaimed deposits (by value)
Future Plan	Expansion of UDGAM portal to include more banks and ease claim procedures