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RBI’s Reported Push on Unclaimed Deposits: A Win for Consumers, but Questions Remain
Moneylife Digital Team 26 September 2025
Investor Interest
Reserve Bank of India (RBI) has called on banks to step up their efforts to trace and return unclaimed deposits worth more than Rs67,000 crore to their rightful owners. These unclaimed amounts include dormant savings and current accounts, matured fixed deposits, as well as uncollected dividends, interest warrants and insurance proceeds.
 
According to multiple media reports, a special outreach drive will be conducted between October and December, with a focus on rural and semi-urban areas, to help identify account-holders and settle these long-pending claims.
 
However, as of now, no official circular, press release or notification reflecting such a directive has appeared on RBI’s website. This gap raises questions about whether the push is part of an internal advisory to banks or whether a formal announcement is still in the pipeline.
 
The problem of unclaimed deposits has been mounting for years. When a bank account remains inoperative for a decade or a fixed deposit matures without being claimed, the funds are transferred to the depositor education and awareness (DEA) fund managed by the central bank. While these amounts can be claimed at any time, the process is often difficult for depositors and their heirs, many of whom are not even aware that the money exists. 
 
RBI’s annual report states that Rs78,213 crore was transferred to the DEA fund at the end of March 2024 which is a 26% jump over that in the previous year. This does not include well over Rs1 lakh crore lying in dormant and inoperative accounts that will be gradually transferred to DEAF after remaining dormant for 10 years.
 
To address this, RBI launched the UDGAM (unclaimed deposits gateway to access information) portal in August 2023. The initiative was meant to provide a single-window platform for individuals to search for unclaimed deposits across banks. Initially covering seven banks, UDGAM has since expanded to include about 30, representing over 90% of the total value of unclaimed deposits. More recently, in 2025, the RBI also eased know-your-customer (KYC) rules to make reactivation of inoperative accounts and refund procedures somewhat less cumbersome (Read: Unclaimed Bank Deposits: RBI Issues New Directions To Help Recover and Refund Money to Rightful Claimants). But for many consumers, procedural obstacles persist and the pace of settlements has remained slow.
 
The heightened attention on unclaimed deposits is not without context. Moneylife Foundation, has played a pivotal role in bringing this issue to the forefront. In 2022, its founder-trustee Sucheta Dalal, had filed a public interest litigation (PIL) that demanded greater transparency and a centralised mechanism for tracking unclaimed financial assets (Read: SC Issues Notice on Plea By Sucheta Dalal That Information on Unclaimed Amounts Lying in Dormant Accounts Be Made Publicly Available on a Centralised Platform). This litigation and years of sustained advocacy pushed the RBI to launch the UDGAM portal. Through its report, Challenges in Transmission of Assets to Nominees and Legal Heirs, Moneylife Foundation has consistently highlighted how banks routinely flout RBI’s own rules by failing to publish lists of unclaimed accounts, demanding excessive documentation and delaying even legitimate claims. These obstacles disproportionately affect senior citizens and legal heirs, leaving families struggling to recover funds that are rightfully theirs.
 
Against this backdrop, the reported three-month directive by RBI, if accurate, could represent a welcome attempt to break the logjam. A time-bound effort would force banks to actively reach out to dormant account-holders and their heirs, streamline claim processing and potentially bring long-delayed relief to depositors. At the same time, the absence of a formal announcement raises concerns about the scope and monitoring of such an initiative. Handling a surge in claims could prove challenging for banks and unless procedures are simplified, the burden of paperwork and delays will continue to frustrate consumers. 
 
Whether or not this particular report translates into a formal directive, the fact remains that unclaimed deposits have finally moved from being a neglected administrative issue to a recognised matter of consumer rights. RBI has already taken steps such as creating the UDGAM portal and easing KYC rules, but challenges remain in terms of coverage, claim procedures and public awareness. If banks are, indeed, being asked to intensify their efforts over the next few months, it would mark another step in addressing a long-standing issue. How this plays out in practice will become clearer once there is official communication or measurable progress from banks.
 
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Comments
Pksengupta
3 months ago
Could you please also look into the activities of "Investor Education and Protection Fund Authority(IEPFA)"? We have been struggling for years for recovery of our "lost shares'. Why is it so difficult for this government body to implement good technology to be transparent to all people who are looking for help?
Reply
r_ashok41
3 months ago
banks should show physical evidence of having tryied to contact the depositer
Reply
deepak.narain
3 months ago
The Banks should be directed to remind the depositors at their known postal and email addresses and to keep the money in question with them for 5 years before transferring to DEA of RBI.
Reply
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