Many people forget old bank accounts or fixed deposits, especially after moving cities or when a family member passes away. Such money can become an unclaimed deposit. The good news is that the money still belongs to the depositor or legal heirs and can be claimed. Here is how.
What are unclaimed deposits
Deposits in savings or current accounts that have not been operated for 10 years, or term deposits not claimed for 10 years after maturity, are classified as unclaimed deposits. Banks transfer these amounts to the Depositor Education and Awareness (DEA) Fund maintained by the Reserve Bank of India.
Is the money lost
No. Even after transfer to the DEA Fund, the depositor or legal heirs can claim the money from the bank at any time, along with interest as applicable under RBI rules.
The UDGAM portal
The RBI launched the UDGAM portal, short for Unclaimed Deposits Gateway to Access Information, in August 2023. It lets people search for unclaimed deposits across many banks at one place, instead of contacting each bank separately.
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How to search
- Visit the UDGAM portal.
- Register with your name and mobile number and verify with OTP.
- Enter the account holder’s name.
- Add at least one more detail, such as PAN, voter ID, driving licence, passport number or date of birth.
- Select the banks you want to search, or search all participating banks.
- View the results showing the bank and a reference number.
How to claim
- Visit the branch of the bank shown in the search result, or any branch of that bank.
- Submit a claim form with KYC documents.
- If you are a legal heir or nominee, submit a death certificate and documents proving your claim, such as a succession certificate or will, as asked by the bank.
- The bank verifies and pays the amount.
Why accounts become inactive
- Moving to a new city or job.
- Death of the account holder without family knowing about the account.
- Forgotten fixed deposits.
- Accounts opened for a single purpose and later ignored.
How to prevent it
- Close accounts you no longer need.
- Keep a list of all your accounts and deposits and share it with your family.
- Register nominees on every account.
- Make at least one transaction a year in every account you keep.
Inactive vs unclaimed
Accounts with no customer transactions for two years are classified as inoperative. You can reactivate them by completing KYC at the bank. Acting early prevents them from becoming unclaimed.
Bottom line
Unclaimed deposits can always be claimed back. Search on the RBI’s UDGAM portal, then visit the bank with KYC and proof to get the money.
Source / स्रोत: UDGAM, Reserve Bank of India, Reserve Bank of India, Press Information Bureau
