RBI launches scheme to speed up settlement of inoperative accounts, unclaimed deposits

Under the scheme, banks will receive a differential payout based on how long the accounts have been inactive and the amount of deposits involved.

The Reserve Bank of India (RBI) has announced a new scheme for facilitating accelerated payout to ensure faster settlement of inoperative accounts and unclaimed deposits lying with banks. The one-year initiative, which will run from October 1, 2025, to September 30, 2026, aims to return funds held in dormant accounts and the Depositors Education Awareness (DEA) Fund to their rightful claimants in a timely manner

The RBI said the scheme is designed to reduce both the existing stock of unclaimed deposits and the future inflow of funds into the DEA Fund by encouraging banks to proactively trace depositors and settle claims. It will apply to all banks registered under the DEA Fund Scheme.

Under the scheme, banks will receive a differential payout based on how long the accounts have been inactive and the amount of deposits involved. For inoperative accounts up to four years, banks will receive 5% of the settled amount or Rs 5,000, whichever is lower. The incentive rises progressively, with banks eligible for up to 7.5% of the settled amount or Rs 25,000 for deposits unclaimed for more than 10 years

To avail the payout, banks must submit quarterly claims in a prescribed format to the RBI, duly signed by a senior executive authorized by top management. Claims must be filed within one month after the end of each quarter and can be submitted by email as well as by post. The RBI has assured that payouts will be settled within 30 days of submission, though they may be subjected to internal audit or inspection.