Reserve Bank of India (RBI) has issued a draft circular, “Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions (Amendment) 2025,” inviting public comments until June 6, 2025. This proposed amendment modifies existing instructions from January 1, 2024, which mandate banks to transfer credit balances in deposit accounts inactive for ten years or more, or any unclaimed amounts, to the Depositor Education and Awareness (DEA) Fund. The primary objective of the amendment is to enhance the process for reactivating such accounts, specifically by enabling Business Correspondents (BCs) to facilitate Know Your Customer (KYC) updates. The draft circular stipulates that banks must provide KYC updation facilities for activating inoperative accounts and unclaimed deposits at all branches, including non-home branches, and through Video-Customer Identification Process (V-CIP) if offered by the bank. Crucially, it adds that an authorized Business Correspondent of the bank can now be utilized for the activation of inoperative accounts, aligning with existing KYC Master Directions. This move aims to streamline the process for account holders to reclaim their funds and update their KYC information.
RESERVE BANK OF INDIA
RBI invites public comments on the draft circular on ‘Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions (Amendment) 2025
Please refer to instructions at paragraph 6.1 of the circular captioned Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions, dated January 1, 2024. Reserve Bank has released today the draft circular on Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions (Amendment) 2025 which modifies the aforementioned instructions.
The comments on the draft circular are invited from the public/ stakeholders till June 6, 2025. The comments/ feedback may be submitted through the link under the ‘Connect 2 Regulate’ Section available on the Reserve Bank’s website or may alternatively be forwarded to
The Chief General Manager
Business Conduct Group
Department of Regulation, Central Office
Reserve Bank of India, 12/13th Floor
Shahid Bhagat Singh Marg
Fort Mumbai – 400 001
Or
by email
(Puneet Pancholy)
Chief General Manager
Press Release: 2025-2026/403
DOR.SOG(LEG).REC/ XXX/ 09.08.024/2025-26
May XX, 2025
All Commercial Banks (including RRBs) and all Co-operative Banks Madam/ Dear Sir
Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions (Amendment) 2025
As per instructions, issued vide circular DOR.SOG(LEG).REC/64/ 09.08.024/2023-24 dated January 1, 2024 (hereinafter called the extant instructions), the credit balance in any deposit account maintained with banks, which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, as mentioned in paragraph 3(iii) of the “Depositor Education and Awareness” (DEA) Fund Scheme, 2014, are required to be transferred by banks to DEA Fund maintained by the Reserve Bank of India. There is a need to enable the Business Correspondents to facilitate KYC and its updation.
2. Accordingly, in exercise of the powers conferred by sections 35A of the Banking Regulation Act, 1949 read with sections 26A, 51 and 56 of the Act ibid and all other provisions of this Act or any other laws enabling Reserve Bank to issue instructions in this regard, these instructions are being issued to amend the extant instructions as given hereunder.
3. (i) These instructions shall be called the Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions (Amendment), 2025.
(ii) The amended instructions shall come into effect on the day these are placed on the official website of the Reserve Bank of India.
4. In the extant instructions, the paragraph 6.1 is hereby substituted by the following, namely: –
“ 6.1 A bank shall make available the facility of updation of KYC for activation of inoperative accounts/ unclaimed deposits at all branches (including non-home branches) and through Video-Customer Identification Process (V-CIP) if requested by a account holder, subject to the facility of V-CIP being provided by the bank. The V-CIP related instructions under Master Direction – Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time) shall be adhered to by the bank. Additionally, an authorised Business Correspondent of the bank may be utilized for activation of inoperative accounts as prescribed in paragraph 38(a)(iia) of the above Master Direction.
Yours faithfully
(Veena Srivastava)
Chief General Manager
