New RBI Guidelines Aim to Recover ₹78,213 Crore in Unclaimed Deposits
In a significant move to address the issue of unclaimed deposits, banks across India will implement new guidelines from April 1, aimed at helping account holders reclaim funds exceeding ₹78,213 crore. The Reserve Bank of India (RBI) has mandated that banks display details of unclaimed deposits on their websites, making it easier for customers and nominees to access this information. The new process will streamline applications for reclaiming these funds, ensuring a more efficient recovery system.
Streamlined Process for Claiming Deposits
Under the new RBI guidelines, banks will introduce a standardized format for reclaiming unclaimed deposits and inactive accounts. This format will include uniform application and declaration forms, along with a consistent set of documents required for the reclamation process. Applicants will need to provide basic information such as their name, mobile number, and address. Once submitted, the respective bank branch will verify the application and process the claim.
A senior banking official emphasized that this new approach will ensure that banks proactively reach out to customers for any additional verification needed. This streamlined process aims to enhance customer experience and facilitate quicker access to unclaimed funds.
Background and Development of Guidelines
The recent guidelines stem from recommendations made by a working group established last year, which included senior bankers from state-run institutions. This group was formed after discussions with the RBI and other stakeholders to find effective methods for expediting the settlement of unclaimed funds. The new standardized format, developed by public sector banks, will also be shared with private sector institutions through the Indian Banks’ Association.
As part of the initiative, the online retrieval mechanism for unclaimed deposits is expected to be fully operational by fiscal year 2026. Currently, customers must navigate the RBI’s UDGAM portal to check for unclaimed deposits before visiting their bank branch to claim their funds.
Financial Impact and Future Directions
The RBI’s Depositor Education and Awareness (DEA) Fund, which receives deposits from accounts inactive for ten years or more, currently holds ₹78,213 crore. This amount reflects a 26% increase from the previous year, highlighting the growing concern over unclaimed funds. The recent Banking Laws (Amendment) Bill, introduced in August, also allows for up to four nominees per bank account, a significant change from the previous limit of one nominee.
Finance Minister Nirmala Sitharaman has directed financial regulators to launch a special initiative aimed at settling unclaimed deposits across various sectors, including banks, shares, dividends, mutual funds, and insurance. This comprehensive approach underscores the government’s commitment to addressing the issue of unclaimed funds and ensuring that customers can reclaim their rightful assets.
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