Over ₹6,800 crore in unclaimed bank deposits has been restituted to nearly 29 lakh claimants across India in the past six months, the Finance Ministry announced on Friday, 29 May 2026, as part of an intensified nationwide drive to help citizens recover dormant financial assets. The development marks a significant acceleration in the government's campaign to clear the backlog of unclaimed funds held with public sector banks.

Review Meeting and Key Announcements

M. Nagaraju, Secretary of the Department of Financial Services (DFS), chaired a comprehensive review meeting of public sector banks (PSBs) to assess performance and progress across key operational, financial, and strategic priorities for FY 2025–26. The meeting was attended by the Special Secretary, DFS, senior officials, the State Bank of India's Chairman, and the Managing Directors, Chief Executive Officers, and Executive Directors of PSBs.

During the meeting, a coffee table book titled 'Your Money, Your Right' was unveiled. The publication documents the nationwide campaign to empower citizens to identify and reclaim unclaimed financial assets, highlighting collaborative efforts among banks, financial institutions, regulators, and other stakeholders in facilitating tracing, claim settlement, and restitution.

The revamped website of the Department of Financial Services was also launched — designed with a citizen-centric approach, the portal is available in 23 regional languages and incorporates accessibility features for persons with visual impairments, reinforcing the government's commitment to inclusive digital service delivery.

PSBs Post Record Profits in FY 2025–26

The review highlighted that PSBs delivered strong financial performance in FY 2025–26. Aggregate business of PSBs reached approximately ₹283.3 lakh crore as on 31 March 2026, while aggregate net profit rose to around ₹1.98 lakh crore — the highest-ever annual net profit in the history of public sector banking in India.

Asset quality also improved markedly. Gross Non-Performing Assets (GNPA) fell to a historic low of 1.93%, while Net Non-Performing Assets (NNPA) declined to 0.39%, reflecting continued balance-sheet strengthening and prudent risk management across the sector.

Financial Inclusion and Digital Lending Progress

Progress under major financial inclusion initiatives — including Pradhan Mantri Jan Dhan Yojana, social security schemes, Pradhan Mantri Mudra Yojana, PM Vishwakarma, and digital lending programmes — was reviewed. PSBs continue to play a central role in expanding financial access and strengthening last-mile banking delivery across the country.

The status of end-to-end digital lending journeys for small-value loans and welfare-linked schemes was also assessed. Banks highlighted paperless processing through e-KYC and digital documentation, straight-through processing (STP), and integration with government platforms to improve accessibility and customer experience.

Advisories and Global Risk Preparedness

Banks were advised to provide proactive, need-based support to eligible borrowers under ECLGS 5.0, strengthen grievance redressal mechanisms, improve operational efficiency, and explore new business opportunities to sustain profitability. Deliberations also covered enhancement of cyber security frameworks and improved credit access for MSMEs.

Notably, banks were also advised to maintain preparedness and adaptability in response to the ongoing crisis in the Middle East and the evolving global situation — a signal that the Finance Ministry is factoring in external macro risks into PSB operational planning. With record profits, historic-low NPAs, and a live unclaimed-deposits drive, India's public sector banking landscape is entering a new phase — though execution on citizen outreach and MSME credit will determine how durable these gains prove.