Banks transfer dormant funds to the DEA Fund, ensuring centralised management under the purview of the RBI. However, depositors maintain the right to retrieve their deposits. Here’s how.
Unclaimed bank deposits in India represent a substantial yet often overlooked pool of funds, lying dormant in accounts for a decade or more. Fun fact: Unclaimed deposits from both public and private-sector banks spiked 28% year-on-year to a whopping ₹42,272 crore by the end of March 2023 as per data presented in Parliament.
Whether forgotten by the account holder or left untouched due to unforeseen circumstances, these deposits find their way into a special account managed by the Reserve Bank of India (RBI) known as the Depositor Education and Awareness (DEA) Fund.
Despite this transition, depositors and their legal heirs retain the right to reclaim these funds, accompanied by any accrued interest. Understanding the process is essential for those seeking to reclaim their rightful assets.
In a press release dated 2022, the RBI highlighted the escalating volume of unclaimed deposits, attributing the surge to various factors such as non-operational accounts, unclaimed maturity of fixed deposits, and instances where legal heirs fail to step forward. The RBI underscores its commitment to assisting depositors in reclaiming their funds, stressing the importance of awareness and accessibility to facilitate the process.
Additional Reading: Here’s How You Can Get Unclaimed Insurance Money
Understanding Unclaimed Deposits
Unclaimed deposits encompass funds held in savings, current, and term deposit accounts that have remained inactive for a prolonged period, typically exceeding 10 years. Upon reaching this threshold, banks transfer these dormant funds to the DEA Fund, ensuring centralised management under the purview of the RBI. Despite this transfer, depositors maintain the right to retrieve their deposits through a designated process.
Initiating the Reclamation Process
To facilitate the retrieval of unclaimed deposits, the RBI has established the UDGAM portal, providing a streamlined platform for depositors to identify and claim their funds. The following steps outline the process:
- Registration on UDGAM Portal: Begin by registering on the UDGAM portal (https://udgam.rbi.org.in/unclaimed-deposits/#/login), providing essential details such as mobile number, name, and password. Agree to the disclaimer and privacy policy before proceeding.
- Verification and Login: Upon registration, log in to the portal using the provided credentials. Verify your identity by entering the OTP sent to your registered mobile number.
- Search for Unclaimed Deposits: Enter the account holder’s name and select the relevant bank from the dropdown menu. Provide additional identification details, such as PAN, voter ID, or date of birth, to narrow down the search.
- Viewing the Results: Once the search is complete, the portal will display a list of unclaimed deposits associated with the provided details.
Additional Reading: How to Claim Unclaimed Deposits From Banks
Claiming Unclaimed Deposits
Having identified the unclaimed deposits, the next step involves initiating the claim process through the respective bank. The requirements for each bank may differ slightly and will be detailed on the respective bank’s website. Broadly, these are the steps involved:
- Visit the Nearest Bank Branch: Head to the nearest bank branch to initiate the claim process. Ensure you have all necessary documents and identification details.
- Fill the Claim Form: Complete the claim form with accurate details, including KYC information. If you are a legal heir, provide the death certificate of the original account holder as proof.
- Submission of Documents: Submit the filled claim form along with KYC documents for verification. Legal heirs must furnish additional documents for authentication.
- Verification and Settlement: The bank will verify the submitted documents and process your claim accordingly. Once validated, your unclaimed deposit will be settled, and you will receive your funds along with any accrued interest.
Reclaiming unclaimed bank deposits is now a straightforward yet crucial process that empowers depositors to retrieve their dormant funds. Through initiatives like the UDGAM portal and streamlined claim procedures, the RBI aims to promote awareness and accessibility, ensuring that rightful depositors can reclaim their assets with ease.
By following the outlined steps and providing necessary documentation, individuals can navigate the reclamation process effectively, securing their financial interests and fostering transparency within the banking sector.