Reclaiming forgotten money: How to retrieve funds lying in old bank accounts

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Why old accounts end up holding unclaimed money

Many people open several savings accounts over the years — for salary, relocation, a home loan, or a job change — and then, over time, stop using one or more of them. When there are no customer-originated transactions in an account for two years, banks mark it as “inactive” and after another year of inactivity it becomes “dormant”. The money does not disappear, but access is stopped, and such balances gradually find their way into the bank’s unclaimed deposits list and on to the RBI’s central repository.

Step 1: Check if your money is listed as unclaimed

Recently, the Reserve Bank of India introduced UDGAM-a single-window central portal that allows you to search unclaimed deposits in all banks with the help of your name, date of birth, or PAN. This is the most convenient way to confirm if any of your older accounts, fixed deposits, recurring deposits, or matured instruments carry money. If the portal shows a match, it displays details of the bank branch where the funds are lying, so you know exactly where to follow up.

Step 2: Go to the bank branch along with basic identity proof.

After identifying the account, you need to visit the relevant bank branch in person. Banks ask for standard KYC documents such as Aadhaar, PAN, and a proof of address. If all identity details match, the bank will either reactivate the account or close the account and transfer its balance to your active account. If the account was very old and the signatures do not match, banks may ask for an additional declaration or a photograph to complete the verification.

Step 3: Submit a simple claim form to release the funds

Banks would give you a claim form where you confirm the ownership of the account and give your present account number, with which credit is to be given. In the case of an old fixed deposit or recurring deposit, you may also have to attach the original deposit receipt if available, although banks nevertheless process the claim without it after internal checks. Once submitted, banks usually release funds within a few days after verification.

What to do in the event that the original account holder is deceased

In the event of the account holder being a family member, the nominee, along with their ID proof and death certificate, can make a claim. In case of no nominee, legal heirs can recover the amount through a simplified claims process involving self-declaration, basic KYC, and a legal heir certificate in certain cases depending upon the amount.

Why you should take stock now

The RBI has been pushing banks to track and return unclaimed balances that have crossed Rs 42,000 crore. With new digital tools, the process is easier than ever. Checking on old accounts will avoid delays and extra paperwork later and ensure money doesn't remain idle when it could be earning better returns in active savings or investment accounts.