Unclaimed deposits in India include Balances in savings or current accounts that have remained inactive for 10 years or more, and Matured deposits that have not been claimed for 10 years from the date of maturity. Banks are required to transfer such funds to the RBI’s Depositor Education and Awareness (DEA) Fund; however, depositors or their legal heirs retain the right to claim the funds along with applicable interest. Effective January 1, 2024, RBI guidelines mandate banks to review inactive accounts annually, notify customers, and attempt tracing in case communication fails. Customer-initiated transactions—such as deposits, withdrawals, online transfers, or interest/DBT credits—prevent accounts from becoming inoperative, whereas bank-initiated entries like interest or charges do not. The UDGAM portal enables depositors to search for unclaimed funds across banks. To claim deposits, customers or heirs must submit a claim form with KYC documents to the respective bank. Unclaimed deposits are rising due to account inactivity, unclaimed matured deposits, and depositor deaths, prompting banks to regularly publish lists for public verification.
What Banks Do With Unclaimed Deposits
Banks transfer all such deposits to the Depositor Education and Awareness (DEA) Fund maintained by the Reserve Bank of India (RBI).
Do Depositors Lose Their Rights?
No. Even after the amount is transferred to the DEA Fund, depositors (or their legal heirs) may claim the deposit from the respective bank along with applicable interest.
RBI Guidelines to Banks on Unclaimed Deposits (Effective January 1, 2024)
- Annual Review of Inactive Accounts
Banks must annually review the accounts with no customer-initiated transactions for over one year. For term deposits without renewal instructions, banks must review cases where proceeds remain unwithdrawn. Customers are notified through letters, email, or SMS, and informed that their account may become inoperative if not operated within the next year, after which fresh KYC will be required for reactivation.
- If Communication Fails
When notices are undelivered or emails receive no response, the bank must trace the account holder or, if deceased, the nominee/legal heirs.
- Customer Response
If the customer responds with valid reasons for non-operation, the account remains operative for an additional one-year extended period. If the account is still inactive afterward, it is classified as inoperative.
- Criteria for Inoperative Status
Only customer-initiated transactions—including Standing Instructions and auto-renewals—are considered. Bank-initiated entries are excluded.
- Account-Wise Classification
Each account is assessed individually. The inoperative status applies to the account, not the customer.
- Accounts Inactive Due to Shift in Primary Bank
Customers who have shifted to another bank may be asked to provide details of their new account to enable balance transfer.
What are Customer-Induced Financial Transactions?
Examples include:
- Cash/ATM deposits or withdrawals
- RTGS, NEFT, IMPS, UPI, AePS, ABPS
- Internet banking transactions
- Debit card transactions
- Transfers to/from linked CBDC (e-Rupee) accounts
- Cheque clearing
- Demand draft remittances
- Third-party cheque withdrawals
- Standing Instructions
- NACH debits/credits
- Term deposit interest/proceeds
- Dividend/interest/redemption proceeds
- DBT credits
- Refunds (e-commerce, Income Tax, etc.)
- NETC toll debits
What Are Bank-Induced Transactions?
Examples:
- Charges levied by banks, including taxes
- Savings account interest
UDGAM Portal: Search for Unclaimed Deposits
RBI has introduced the UDGAM (Unclaimed Deposits – Gateway to Access Information) portal to help users search for unclaimed deposits across multiple banks.
How to Search on the UDGAM Portal
1. Visit the portal and register using your mobile number, name, password, and captcha.
2. Complete registration by entering the OTP.
3. Log in using your mobile number, password, and OTP.
4. Enter the account holder’s name and select the bank(s).
5. Provide any one detail: PAN, voter ID, driving licence, passport number, or date of birth.
6. Click Search to view any unclaimed deposits.
How to Claim Unclaimed Deposits
- Visit the bank branch where the deposit/account is held.
- Fill out the claim form with personal and account details.
- Submit the form along with KYC documents, deposit receipts, and photographs.
- Legal heirs must also submit the account holder’s death certificate.
Why Unclaimed Deposits Are Increasing
Despite awareness efforts, unclaimed deposits continue to rise due to:
- Non-closure of savings/current accounts no longer in use
- Failure to submit claims for matured deposits
- Depositors’ deaths where nominees/heirs do not approach the bank
Banks publish lists of unclaimed deposits on their websites. The public is encouraged to check these lists and contact the respective bank to claim such funds.
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