RBI launches drive to return Rs 67,270 crore in unclaimed bank deposits

State Level Bank Committees (SLBCs) will review unclaimed deposit data by age profile and bucket-wise concentration to provide a more localized analysis. Special efforts are to be made to trace account owners and encourage them to reclaim their deposits

The Reserve Bank of India (RBI) has urged banks to intensify efforts to return unclaimed deposits, including dividends, interest warrants, and insurance proceeds. A special drive is planned from October to December in rural and semi-urban regions to trace and settle these dormant funds, Business Standard reports.

Accounts that have remained inactive for over 10 years, such as current and savings deposits, term deposits unclaimed beyond maturity, and uncollected dividends or interest, are classified as unclaimed deposits.

Former RBI Governor Shaktikanta Das had earlier announced in the February monetary policy statement the development of a centralized web portal to help depositors and beneficiaries track unclaimed deposits across multiple banks. These funds are eventually transferred to the Depositor Education and Awareness (DEA) Fund maintained by the RBI.

Banks have been instructed to run awareness campaigns through print and electronic media, emphasizing areas with lower literacy levels and rural or semi-urban populations. Campaigns are expected to be conducted in local languages to ensure wider reach, Business Standard adds.

State Level Bank Committees (SLBCs) will review unclaimed deposit data by age profile and bucket-wise concentration to provide a more localized analysis. Special efforts are to be made to trace account owners and encourage them to reclaim their deposits.

Parliament was informed in July that unclaimed deposits in India amounted to approximately Rs 67,270 crore. The RBI's Unclaimed Deposits Gateway to Access (UDGAM) portal allows depositors to search for unclaimed accounts across multiple banks. As of March 4, 2024, 30 banks are participating in the portal, covering around 90% of unclaimed deposits in value, according to Business Standard.