Dormant Funds Deadline
Chennai
The Reserve Bank of India (RBI) has directed banks to return unclaimed deposits to rightful owners, nominees, or heirs within the next three months. The period from October to December 2025 has been set as a focused timeframe to clear pending claims and reactivate dormant accounts.
Unclaimed deposits are balances in savings or current accounts with no activity for 10 years, or term deposits unclaimed for 10 years after maturity. These funds are transferred to the Depositor Education and Awareness (DEA) Fund but can be claimed anytime by approaching banks.
RBI data shows unclaimed deposits rose nearly 26 percent in a year, reaching about ₹78,213 crore by March 2024. To facilitate claims, RBI revised rules on inoperative accounts and unclaimed deposits, making it easier for customers to update KYC details through branch visits, video-based verification (V-CIP), or business correspondents in local areas.
The central bank is also promoting its UDGAM portal, which enables individuals to check unclaimed deposits across banks via a single online search. Over 8.5 lakh users have accessed it so far.
The drive aims to clean up bank balance sheets, improve customer welfare, and strengthen trust in the financial system. However, challenges include heavy operational pressure on banks, fraud risks from relaxed KYC processes, and lack of awareness, especially in rural areas.
Experts say the three-month push is ambitious but reflects RBI’s focus on depositor protection and banking transparency. If successful, it could return long-forgotten funds to the economy and strengthen public trust in banking.