Bank Introduce Simplified Process Facilitating Beneficiaries to Claim Unclaimed Deposits Worth ₹78,000 Crore

Banks are set to introduce a simplified format enabling account holders or their nominees to withdraw more than ₹78,213 crore lying as unclaimed deposits, sources said.

The step will include common application forms and declaration forms besides a list of standard documents required for reclaiming such deposits.

An executive associated with the public sector bank said that the application requires details such as name, mobile number and address. This will be processed by the respective bank branch after necessary verification.

“The recommendations of a working group set up to look into the issue of unclaimed deposits have been accepted,” another bank executive said. “From FY26, the online retrieval mechanism will be fully operationalised.”

Previously, the government along with other stakeholders, and senior bankers suggested ways to expedite the settlement of unclaimed funds.

A third executive said that the whole process will be seamless across all banks.

“Once a customer has filled in the details, it will ensure that the concerned bank branch reaches out to the customer for additional verification if required, and transfers the amount to the verified account,” he said.

Notably, the move comes as banking institutions are set to implement the RBI's latest guidelines on the classification of unclaimed deposits and inactive accounts to be effective from April 1. Banks will also publish details of unclaimed deposits on their websites, including account holders names and addresses.

Presently, customers can check their unclaimed deposits via the UDGAM portal of the RBI. They are required to visit the respective bank branches to retrieve the amount.

Bank accounts that have remained inoperational for 10 years or more are transferred to the RBI's Depositor Education and Awareness (DEA) Fund. As of March 2024, the fund held ₹78,213 crore, up 24% from the previous fiscal year.

Earlier, Finance Minister Nirmala Sitharaman advised financial sector regulators to conduct a special drive to facilitate the settlement of unclaimed deposits and claims in the financial sector. These include banks, shares, dividends, mutual funds and insurance.