How to claim unclaimed bank deposits

Adhil ShettybankBazaar.comSheena lost her husband in an accident a few years back. Shocked at this irreparable loss and being a housewife, she was helpless and unaware about what to do and how to manage the finances and estate left behind by him.Her relatives helped her to manage all the property and finances so that no one could take an undue advantage of her situation. However, this proved to be inadequate—something was still missing. Though she was not aware about the deposits of her husband, she was able to recover some with the help of her family.Yet, she still she had a nagging feeling that not all his deposits had been traced and recovered. Her friend Raghav, who came to her rescue, explained that the Reserve Bank had mandated banks to publish unclaimed deposits on their sites.Let’s see what unclaimed bank deposits are and how you can claim them.What are unclaimed bank deposits?A bank account that is not operational for a period of 10 years or more from the date of last operation is an unclaimed deposit. In case of a Term Deposit account, no withdrawal or renewal after a period of 10 years or more from the date of maturity is treated as an unclaimed deposit. These will continue to earn returns, but at the saving bank account interest rate, irrespective of the fact that the accounts have become inoperative.Around 64,000 crore rupees are reported to be lying idle and unclaimed with banks, insurance companies, post offices, Employees’ Provident Fund Organization (EPFO), etc. Recently, the RBI issued a notification to banks to determine the whereabouts of account holders of unclaimed money. Banks are required to make efforts for tracing of such account holders.How to find out Unclaimed Bank DepositsAs per the new guidelines of RBI on unclaimed deposits, banks are required to mention the name and address of such account holders on their websites. Other details such as account number and bank branch need not be displayed. So, for unearthing unclaimed accounts and deposits on any name, one can rely on bank websites using the following details:• Name and date of birth of the deceased or• Name and phone number or • Name and PAN card Sometimes, pin codes and telephone numbers along with names too can help.How to claim an unclaimed depositYou can download an online form for making a claim of unclaimed deposit from the respective bank’s website. Other documentation requirements are also mentioned on said websites.In case you possess documentary proof of having a deposit or account in the bank but the deposit holder’s name is not listed on the bank’s website, you can approach the bank for further assistance. In such a case, the bank will try to ascertain the correct status of the account. So, don’t give up on your claim even if the bank has missed mentioning the account on its website.Claims can be made either by the account holder himself (in case if he is alive and forgot about the deposit) or by the nominee or legal heir of the account holder (in case if the account holder is deceased). The person who wants to make a claim has to submit the required form duly filled, along with other necessary documents such as proof of deposit, id proof of the claimant, etc. In case the claim is made by the nominee or legal heir, then a copy of the deceased’s death certificate is required. Also, the legal heir is required to submit the proof of being the legal heir.The bank will process your request and the claim will be allowed after proper verifications. Usually, the verification procedure is not very complex for amounts up to Rs. 10-15 lakh. However, amounts exceeding this limit may require few more verification steps, such as the release of a press note by the bank in newspapers about the claim.Procedure to claim an unclaimed amount in case of non-individualNon-individuals can be companies, institutions, organizations, etc. In such cases, only authorized persons to operate the account on the behalf of the company or organization can raise the claim. The claim form will be submitted on the letterhead of the company and other required documents should accompany the claim.Upon completion of all the required documents, a verification of genuineness of the case will lead to approval of the claim.The bottomlineThere could be reasons other than death of the account holder whereby money remains unclaimed. Sometimes, account holders even forget to claim a long term fixed deposit. Irrespective of the reason, one should not leave their hard earned money unattended. The government is making efforts to restore unclaimed amounts to their rightful owners. Make the best use of this opportunity to claim the money that is lawfully yours.