RBI Urges Banks To Identify & Return ₹67,000 Crore Unclaimed Deposits To Rightful Owners

**RBI Urges Banks to Trace and Return Over Rs 67,000 Crore in Unclaimed Deposits**
*New Delhi:* The Reserve Bank of India (RBI) has called on banks to intensify efforts to identify and return unclaimed deposits exceeding Rs 67,000 crore to their rightful owners. These unclaimed deposits encompass dormant savings and current accounts, matured term deposits, uncollected dividends, interest warrants, and insurance proceeds.
To address this, the RBI plans a special outreach initiative from October to December, focusing on rural and semi-urban regions. The objective is to trace owners of these dormant accounts and facilitate the settlement of their dues, according to multiple media reports.
### Understanding Unclaimed Deposits
Balances in savings and current accounts that remain inoperative for ten years, or term deposits unclaimed for ten years from their maturity date, are classified as unclaimed deposits. Banks then transfer these funds to the Depositor Education and Awareness (DEA) fund maintained by the central bank.
### Targeted Outreach in Low Literacy Areas
The RBI’s initiative will primarily focus on areas with lower literacy and awareness levels. It involves localized publicity campaigns in multiple languages through print and electronic media to maximize reach.
State Level Bank Committees (SLBCs) will play a crucial role by analyzing unclaimed deposit data based on age profiles and concentration buckets. This data-driven approach aims to enable more targeted efforts to trace and settle deposits at the local level.
### UDGAM Portal to Facilitate Access
To aid the public in locating their unclaimed deposits, the RBI has launched the UDGAM (Unclaimed Deposits – Gateway to Access Information) portal. This centralized online platform allows users to search for unclaimed deposits across multiple banks in India.
Currently, the UDGAM portal covers approximately 90 percent of the total unclaimed deposit value, with participation from around 30 banks.
### Guidelines for Insurance Sector
According to the Insurance Regulatory and Development Authority of India (IRDAI), insurers holding unclaimed amounts from policyholders for over 10 years must transfer these funds, along with accrued interest, annually to the Senior Citizens’ Welfare Fund (SCWF).
Importantly, even after such transfers, policyholders or claimants remain eligible to claim their dues under respective policies for up to 25 years.
### Utilization of the Senior Citizens’ Welfare Fund
The SCWF supports schemes aimed at promoting the welfare of senior citizens, aligning with the National Policy on Older Persons and the National Policy on Senior Citizens.
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