How is RBI Encouraging Banks to Recover Crores in Unclaimed Deposits?
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Synopsis
The RBI is launching a campaign to recover unclaimed deposits worth over Rs 67,000 crore, focusing on rural regions. This initiative aims to enhance awareness and ensure rightful owners reclaim their funds through localized outreach and a dedicated online portal.
Key Takeaways
- RBI is urging banks to recover over Rs 67,000 crore in unclaimed deposits.
- An outreach initiative will target rural and semi-urban areas from October to December.
- The UDGAM portal facilitates the public in locating their unclaimed deposits.
- Unclaimed deposits include dormant savings and current accounts as well as matured policy proceeds.
- Claimants retain the right to claim funds for up to 25 years.
New Delhi, Sep 24 (NationPress) The Reserve Bank of India (RBI) has called on financial institutions to enhance their initiatives aimed at locating and returning unclaimed deposits exceeding Rs 67,000 crore to their rightful owners.
Unclaimed deposits comprise dormant savings and current accounts, matured term deposits, unclaimed dividends, interest warrants, and insurance payouts.
A dedicated outreach campaign is set to commence from October to December, focusing on rural and semi-urban areas to trace the owners of these dormant accounts and resolve their status, as reported by various media sources.
Deposits in savings and current accounts that have been inactive for ten years, or term deposits not claimed within a decade of maturity, are categorized as unclaimed deposits. These funds are subsequently redirected by banks to the DEA fund managed by the central bank.
The RBI’s initiative is aimed at regions with lower literacy and awareness levels, utilizing localized advertising in multiple languages through print and digital media.
State Level Bank Committees (SLBCs) will evaluate unclaimed deposit statistics by age and concentration to provide a more localized analysis, with a focus on tracing and settling these deposits.
The UDGAM (Unclaimed Deposits - Gateway to Access Information) portal is a centralized online resource introduced by the RBI to assist the public in locating their unclaimed deposits across various banks in India.
Currently, the portal encompasses approximately 90 percent of the unclaimed deposit value with involvement from around 30 banks.
According to the Insurance Regulatory and Development Authority (IRDAI), insurers holding unclaimed amounts from policyholders for over ten years must transfer these funds, with interest, to the Senior Citizens’ Welfare Fund (SCWF) annually.
Moreover, even after these unclaimed amounts are allocated to the SCWF, policyholders or claimants maintain the right to claim the owed amounts under their policies for up to 25 years.
The SCWF is utilized to support initiatives aimed at enhancing the welfare of senior citizens, in accordance with the National Policy on Older Persons and the National Policy on Senior Citizens.
Point of View
I believe the RBI's proactive stance on unclaimed deposits is commendable. It's vital to bridge the gap between banks and account holders, especially in rural areas where awareness is low. This initiative not only supports citizen welfare but also promotes financial inclusion, aligning with our nation's economic goals.
NationPress
24/09/2025
Frequently Asked Questions
What are unclaimed deposits?
Unclaimed deposits refer to funds in dormant savings accounts, matured term deposits, and uncollected insurance proceeds that have not been accessed by the rightful owners for an extended period.
How does the RBI plan to address unclaimed deposits?
The RBI plans to enhance outreach efforts through campaigns in rural areas and by utilizing the UDGAM portal to help individuals locate their unclaimed funds.
What is the UDGAM portal?
The UDGAM portal is a centralized online platform launched by the RBI to assist the public in finding their unclaimed deposits across multiple banks in India.
How long can claimants claim their unclaimed amounts?
Claimants can claim their unclaimed amounts for up to 25 years after they have been transferred to the Senior Citizens’ Welfare Fund.
What is the purpose of the Senior Citizens’ Welfare Fund?
The SCWF is used to support schemes that promote the welfare of senior citizens in line with national policies.
