New Era for Unclaimed Deposits in India

Banks across India are set to revolutionize the way account holders or nominees can reclaim unclaimed deposits, which now exceed a staggering Rs 78,213 crore. This initiative is in response to new RBI guidelines aimed at simplifying the retrieval process, effective from April 1.

Streamlined Process for Easier Access
The new guidelines mandate banks to display details of unclaimed deposits on their websites, including a public search feature. A standardized application and declaration form, along with a uniform set of documents, will be introduced to facilitate the reclamation process.

What Account Holders Need to Know

Applicants will be required to provide basic information such as name, mobile number, and address. Bank branches will then verify and process these applications, ensuring a smoother transition of funds to the rightful owners.

Future-Proofing the Process
From FY26, an online retrieval mechanism will be fully operational, marking a significant step forward in addressing the issue of unclaimed deposits.

Government and RBI's Collaborative Effort

The move follows recommendations from a working group established last year, comprising senior bankers from state-run institutions, to expedite the settlement of unclaimed funds. The standardised format developed will be shared with private sector banks through the Indian Banks' Association.

A Unified Approach
Finance Minister Nirmala Sitharaman has called for a special drive to settle unclaimed deposits across various financial sectors, emphasizing the government's commitment to safeguarding depositors' interests.