Page 55 - Banking Finance January 2025

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RBI tackles unclaimed deposits

T he Reserve Bank of India is actively working to In May 2023, the RBI launched the "100 Days 100 Pays"

campaign, aimed at accelerating the resolution of
resolve the issue of unclaimed deposits to
unclaimed deposits. This initiative tasked banks with
safeguard the interests of depositors. Unclaimed
deposits typically include balances in savings or
each district within 100 days, from June 1, 2023, to
current accounts inactive for over 10 years, as well as term identifying and settling the top 100 unclaimed deposits in
deposits unclaimed 10 years after maturity. These funds are September 8, 2023. The campaign was later extended until
transferred to the Depositor Education and Awareness (DEA) April 1, 2024, to ensure more comprehensive efforts in
Fund managed by the RBI; however, depositors retain the addressing this issue.
right to reclaim their money, along with any applicable
interest, from the respective banks. To further support the reclamation process, the RBI
introduced the UDGAM (Unclaimed Deposits - Gateway to
Unclaimed deposits arise from various reasons, including Access InforMation) portal in August 2023. This centralised
failure to close inactive accounts, unclaimed matured fixed web platform allows the public to search for unclaimed
deposits, or accounts of deceased depositors where deposits across multiple banks. By March 2024, 30 banks,
nominees or heirs fail to claim the funds. covering about 90 per cent of unclaimed deposits in the DEA
Fund, had joined the UDGAM initiative, with more expected
Data from 2018 to 2022 (see Table) indicates a steady to follow.
increase in unclaimed deposits held by scheduled commercial
banks, with savings accounts constituting 73 per cent of the The UDGAM portal enables users to search for unclaimed
total. Furthermore, the RBI's DEA Fund balance rose by 26 deposits by providing the accountholder's name, the bank's
per cent, from Rs. 62,224.89 crore in 2022-23 to Rs. name, and other identifying details. While the portal helps
78,212.53 crore in 2023-24. To address this growing locate deposits, the actual claims must be processed directly
concern, the RBI has implemented several initiatives to with the respective banks.
ensure these funds are returned to their rightful owners.
Norms to Classify Accounts
Bank Websites In January 2024, the RBI issued new guidelines for classifying
To aid depositors, nominees and legal heirs of deceased accounts as inoperative or deposits as unclaimed. Banks are
depositors in identifying and claiming unclaimed deposits, now required to review accounts annually that have had no
the RBI mandates banks to display a list of such deposits on customerinitiated transactions for over a year. For term
their websites. This list includes essential details, such as the deposits without a renewal mandate, banks must assess
name, address, and Unclaimed Deposit Reference Number whether the proceeds have been withdrawn or transferred
(UDRN) for deposits transferred to the DEA Fund, enabling to the accountholder's savings or current account.
the public to locate the funds and contact the respective
banks for the claims process. However, sensitive information Furthermore, banks must notify accountholders via letters,
like account numbers, balances, and branch details must not emails, or SMS if their accounts are inactive. However, the
be disclosed. RBI has exempted zerobalance accounts from being

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