Why unclaimed deposits keep growing — and how to track what’s yours

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In recent years, Indian banks have seen a high level of unclaimed deposits. These are funds languishing in accounts untouched for more than a decade or two. They could be of people who changed jobs, moved cities, or simply forgot an old account or fixed deposit. Sometimes the original account holders are no longer alive, and their family members are unaware of the money languishing unclaimed.

What happens to these deposits

If a deposit remains idle for a period of ten years, banks transfer the amount to the Reserve Bank of India's Depositor Education and Awareness (DEA) Fund. But it does not imply that the money gets lost. It can be reclaimed by the owner or its legal heirs by producing suitable documents. The RBI has also made the process more transparent and user-friendly by taking several steps, especially in the wake of digital banking.

Why unclaimed deposits continue to rise

There are various reasons why the number of unclaimed deposits is increasing. Individuals tend to open multiple accounts for salary, savings, or investments and lose track of closing the old accounts. Senior citizens or NRIs could also have deposits in other small banks or cooperative institutions that remain unnoticed. What's more, changes in bank mergers and account numbers may sometimes leave depositors confused, and as a result, forgetful of balances.

How to track down your unclaimed money

Recently, RBI launched a central portal called UDAAN (Unclaimed Deposits – Access and Awareness) through which a search in various banks can be done by giving simple information such as name, PAN, or date of birth. Earlier, you used to visit the websites of various banks, but now the portal facilitates a search easily. Once you get a probable match, you may visit the concerned bank with ID proofs to claim it.

A reminder to remain financially tidy

Catching up on unclaimed deposits isn't merely about reclaiming lost money — it's also about improved financial cleanliness. Maintaining a list of your bank accounts, deposits, and investments helps avoid future slips. Sharing this information with family members means that your savings aren't left behind in the process. A small effort now to keep track of your finances can work towards protecting your hard-earned money in the future.

FAQs

Q: After how long is a deposit considered unclaimed?

A deposit is considered unclaimed when there is no activity in the account for ten years.

Q: Do unclaimed deposits go to legal heirs?

Yes, the amount can be claimed by legal heirs by showing proof of identity and relationship to the bank.

Q: How do I check for unclaimed deposits?

You can check unclaimed deposits from multiple banks using RBI's UDAAN portal.