Unclaimed funds in banks reach 78.213 billion rupees, up 26% year on year: RBI

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Banks Transfer Unclaimed Deposits to RBI's DEA Fund

Disclaimer: This blog is intended for informational purposes only and should not be considered as financial advice. Always consult with a professional before making any financial decisions.

Banks, including cooperative banks, transfer unclaimed deposits of account holders that have been inactive for 10 or more years to the Reserve Bank of India's (RBI) Depositor Education and Awareness (DEA) Fund.

Mumbai: Unclaimed deposits with banks have seen a significant 26% increase year-on-year, reaching ₹78,213 crore by the end of March 2024, according to the RBI Annual Report released today. This is up from ₹62,225 crore at the end of March 2023.

In an effort to assist account holders and streamline the management of inoperative accounts, the RBI issued comprehensive guidelines earlier this year. These guidelines cover various aspects of classifying accounts and deposits as inoperative or unclaimed.




The RBI advises banks to periodically review such accounts, implement measures to prevent fraud, and establish a grievance redress mechanism for the quick resolution of complaints. Banks are also instructed to trace customers of inoperative accounts or unclaimed deposits, including their nominees or legal heirs, to reactivate accounts, settle claims, or close accounts as needed.

These measures are designed to complement ongoing efforts by banks and the RBI to reduce the amount of unclaimed deposits in the banking system and return these funds to their rightful owners or claimants.

The revised instructions apply to all commercial banks (including Regional Rural Banks) and all cooperative banks, effective from April 1, 2024. To make it easier for depositors to search for unclaimed deposits across multiple banks, the RBI has developed a centralized web portal, UDGAM (Unclaimed Deposits Gateway to Access Information).

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