Home India Ministry of Finance Parliament Question: Unclaimed Money/Deposits in Banks...
Date: 2025-07-28 Category: Not Applicable State: Union Government Country: India

Parliament Question: Unclaimed Money/Deposits in Banks

Issued by Ministry of Finance · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document responds to Lok Sabha Unstarred Question No. 1348 regarding unclaimed money deposits in banks. It outlines the regulations governing unclaimed deposits, steps taken by banks and the RBI to return these deposits to rightful owners, the effectiveness of the UDGAM portal, and the utilization of unclaimed funds. The data on unclaimed deposits transferred to the Depositor Education and Awareness (DEA) Fund as of June 30, 2025, is included. Key Points / Main Content: Unclaimed Deposits Regulations: * The Depositor Education and Awareness Fund Scheme, 2014, governs unclaimed deposits. * Balances in savings and current accounts inoperative for ten years, or term deposits unclaimed within ten years of maturity, are classified as Unclaimed Deposits. * Banks transfer unclaimed deposits to the DEA Fund maintained by the RBI. * Non-Banking Financial Companies (NBFCs) are not required to transfer unclaimed deposits to the DEA Fund. * State-wise information on unclaimed deposits is not maintained by the RBI. Bank and RBI Actions for Returning Unclaimed Deposits: * Banks are advised to display lists of unclaimed deposits inactive for ten or more years on their websites. * Banks should locate customers and their legal heirs to return unclaimed deposits. * Banks must establish a grievance redressal mechanism for resolving complaints and maintain records. * Banks must formulate board-approved policies on classifying unclaimed deposits. * RBI has launched the UDGAM portal to enhance accessibility and simplify the search process for unclaimed deposits. * RBI has undertaken public awareness campaigns through various media. * As of July 1, 2025, 859,683 users registered and accessed the UDGAM portal. Utilization of Unclaimed Funds: * The DEA Fund is administered by a committee. * The fund is used for the promotion of depositors’ interests and other related purposes as specified by the RBI. Unclaimed Deposit Amounts (as of June 30, 2025): * Public Sector Banks: Total amount in DEA Fund is ₹58,330.26 crores. * Private Sector Banks: Total amount in DEA Fund is ₹8,673.72 crores. Impact Analysis: Public Sector Banks and Private Sector Banks: * Impact: Required to identify and return unclaimed deposits, adhere to RBI guidelines for managing unclaimed deposits, and transfer eligible deposits to the DEA Fund. * Action Required: Display lists of unclaimed deposits, locate customers/heirs, establish grievance redressal mechanisms, formulate board-approved policies, and transfer unclaimed deposits to the DEA Fund. Reserve Bank of India (RBI): * Impact: Responsible for managing the DEA Fund, issuing guidelines related to unclaimed deposits, and promoting public awareness. * Action Required: Administer the DEA Fund, oversee bank compliance, operate and maintain the UDGAM portal, and conduct public awareness campaigns. Account Holders/Nominees/Legal Heirs: * Impact: Can use the UDGAM portal to search for and reclaim unclaimed deposits. * Action Required: Utilize the UDGAM portal to search for potential unclaimed deposits and follow bank procedures to reclaim funds.

Key Entities Referenced

Dr. M K VISHNU PRASAD: Member of Parliament who raised the question about unclaimed money deposits. SHRI PANKAJ CHAUDHARY: The Minister of State for Finance who provided the answer to the question. Public Sector Banks: Government-owned banks in India. Private Banks: Privately owned banks in India. Non Banking Financial Companies: Financial institutions that provide banking services without meeting the legal definition of a bank. Reserve Bank of India: The central bank of India, responsible for regulating the banking system and managing the country's currency. Depositor Education and Awareness Fund Scheme, 2014: A scheme established by the Reserve Bank of India to manage unclaimed deposits and promote depositors' interests. UDGAM (Unclaimed Deposits Gateway to Access Information): A centralized web portal launched by the Reserve Bank of India to facilitate the search for unclaimed deposits across multiple banks.
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GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. 1348 ANSWERED ON MONDAY, JULY 28, 2025/ SRAVANA 6, 1947 (SAKA) Unclaimed Money/ Deposits in Banks 1348. Dr. M K VISHNU PRASAD: Will the Minister of Finance be pleased to state: (a) the total amount of unclaimed money / deposits lying with the Public Sector Banks (PSBs) Private Banks and Non Banking Financial Companies (NBFCs), bank, NBFC- wise and State- wise; (b) the steps taken by the banks to identify and return such unclaimed deposits to the account holder or nominee or legal heirs; (c) the effectiveness of the Udgam portal and the total amount returned through this portal; and (d) the proposals for utlilisation of such unclaimed funds after a period of time and if so, the details thereof? ANSWER THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY) (a): The Depositor Education and Awareness Fund Scheme (Scheme), 2014, issued by the Reserve Bank of India, governs the norms related to unclaimed deposits and outlines details of utilisation of fund including, inter- alia, promotion of depositors’ interests and other purposes as may be specified by the RBI. Balances in savings and current accounts that remain inoperative for ten years, or term deposits not claimed within ten years from the date of maturity, are classified as Unclaimed Deposits and subsequently transferred by banks to the Depositor Education and Awareness (DEA) fund maintained by RBI. Non- Banking Finance Companies (NBFC) are not required to transfer unclaimed deposits to DEA fund. Further, the details of unclaimed deposits of Public Sector Banks and Private Sector Banks, transferred to DEA fund as on 30.6.2025, are at Annexure. However, the State- wise information of the same is not maintained by RBI. (b) and (c): RBI has taken various steps to identify and return such unclaimed deposits to the account holder or nominee or legal heirs in reclaiming their unclaimed deposits and have advised banks to inter-alia, - (i) display the list of unclaimed deposits which are inactive/ inoperative for ten years or more on the bank’s websites; (ii) find the whereabouts of the customers and their legal heirs to return unclaimed deposits to the rightful claimants; (iii) put in place a grievance redressal mechanism for quick resolution of complaints, record keeping, and periodic review of unclaimed deposits accounts. (iv) formulate board approved policy on classification of unclaimed deposits. Further, RBI has undertaken various public awareness campaigns through print, radio, and digital media to educate the public about the scheme. To enhance accessibility and simplify the search process for unclaimed deposits, RBIhas launched the Centralised Web Portal UDGAM (Unclaimed Deposits- Gateway to Access Information) for public. As on 1.7.2025, 8,59,683 users registered and accessed UDGAM portal. The said portal facilitates the registered users to search unclaimed deposits/ amounts across multiple banks at one place in a centralized manner. (d): With regard to utilisation of unclaimed fund, RBI has stated that as per the provisions of The Depositor Education and Awareness Fund Scheme (Scheme), 2014, there shall be a Committee to administer and manage the fund in accordance with the Scheme. The fund shall be utilised for promotion of depositors’ interest and for such other purposes which may be necessary for promotion of depositors’ interest as may be specified by RBI. *****Annexure Annexure to Part (a) of the Lok Sabha unstarred Question no. 1348, dated 28.7.2025 regarding “Unclaimed Money/ Deposits in Banks” Depositor Education and Awareness Fund Bank-wise Balances as on 30.6.2025 - Public Sector Banks S. No. Name of the bank Total amount in ₹ crores 1 Bank of Baroda 5,277.36 2 Bank of India 3,933.88 3 Bank of Maharashtra 1,134.81 4 Canara Bank 6,278.14 5 Central Bank of India 2,091.94 6 Indian Bank 3,739.82 7 Indian Overseas Bank 2,385.78 8 Punjab and Sind Bank 831.46 9 Punjab National Bank 6,910.67 10 UCO Bank 1,311.99 11 Union Bank of India 5,104.50 12 State Bank of India 19,329.92 Total 58,330.26 *Source: Reserve Bank of India Depositor Education and Awareness Fund Bank-wise Balances as on 30.6.2025 – Private Sector Banks S. No. Name of the bank Total amount in ₹ crores 1 IDBI Bank Ltd 589.77 2 The Catholic Syrian Bank Ltd 87.75 3 City Union Bank Ltd 131.23 4 Dhanlaxmi Bank Ltd 101.09 5 Federal Bank Ltd 347.72 6 The Jammu & Kashmir Bank Ltd 363.21 7 Karnataka Bank Ltd 329.83 8 The Karur Vysya Bank Ltd 258.04 9 The Nainital Bank Ltd 43.39 10 Ratnakar Bank Ltd 54.33 11 South Indian Bank Ltd 283.05 12 Tamilnad Mercantile Bank Ltd 162.69 13 Axis Bank Ltd 1,360.16 14 DCB Bank Ltd 91.87 15 HDFC BANK LTD. 1,609.56 16 ICICI Bank Ltd 2,063.45 17 IndusInd Bank Ltd 185.07 18 Kotak Mahindra Bank Ltd 558.72 19 Yes Bank Ltd 52.31 20 IDFC BANK LIMITED 0.00 21 BANDHAN BANK LIMITED 0.47 Total 8,673.72 *Source: Reserve Bank of India

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