RBI pushes for return of unclaimed bank deposits over next 3 months

The Reserve Bank of India (RBI) has asked all banks to beef up settlements of unclaimed funds — deposits, dividends, interest warrants, pensions, etc — over the next three months (October to December) to reduce such funds in the banking system. 

Balances in savings or current accounts that have not been operated for 10 years, or term deposits not claimed within 10 years from the date of maturity, are classified as ‘unclaimed deposits’. These amounts are transferred by banks to the Depositor Education and Awareness Fund maintained by the RBI. Depositors, however, are still entitled to claim the deposits at a later date from the banks where they were held, along with applicable interest. 

In a communication to banks, the regulator said that in a recent meeting of the Financial Stability and Development Council, it was decided to hold district-level, week-long joint camps to settle unclaimed funds. The first camp is scheduled for the first week of October in Gujarat, and more such camps will be held across the country until December. 

The State Level Bankers’ Committee (SLBC) has been given primary responsibility to lead this initiative in the respective states. 

SLBCs have been asked to strive for maximum claim settlement during the special drive period from October to December.

Banks have been asked to prepare district-wise lists of unclaimed deposits and share them with respective branches to contact the rightful claimants. The SLBC has been asked to review unclaimed deposit data in the state and districts.

 

SLBC’s review of unclaimed deposit data in the states and  districts will be based on ageing profile and bucket-wise concentration, to provide appropriate strategy guidance to member banks. 

The committee has also been asked to liaise effectively with state government departments and agencies, draw their attention to unclaimed deposits pertaining to the state government, and ensure their active support in logistics, selection of venues for camps, and verification with the death registry. 

Banks have been requested to ensure due care and give personal attention to make the initiative successful and reduce unclaimed funds in the system. 

According to the RBI, the growing volume of unclaimed deposits arises mainly due to the non-closure of savings or current accounts that depositors no longer intend to operate, or due to not submitting redemption claims for matured fixed deposits. There are also cases of accounts belonging to deceased depositors, where nominees or legal heirs do not come forward to make a claim on the bank(s) concerned.

 

In July, Parliament was informed that unclaimed deposits with banks, including private lenders, stood at around ₹67,003 crore at the end of June 2025.

 

The Unclaimed Deposits — Gateway to Access (Udgam) information portal, developed by the RBI, allows registered users to search unclaimed deposits/accounts across multiple banks in one centralised location.

 

As of March 4, 2024, 30 banks are part of the Udgam portal, covering around 90 per cent of unclaimed deposits in value terms.