Unclaimed deposits with banks rise 28% YoY to Rs 42,272 cr

In the previous fiscal year (FY22), unclaimed deposits with public and private sector banks totalled Rs 32,934 crore.

The figure saw a substantial rise to Rs 42,272 crore by the end of March 2023, reflecting a 28 percent increase.

Of this total, Rs 36,185 crore in unclaimed deposits were held by public sector banks, while private sector banks held Rs 6,087 crore.

It's important to note that banks transfer unclaimed deposits of account holders inactive for 10 or more years to the RBI's Depositor Education and Awareness (DEA) Fund.

Minister of State for Finance Bhagwat K Karad stated in a written reply to Rajya Sabha that the RBI has implemented various measures to reduce the volume of unclaimed deposits and facilitate the return of such deposits to rightful claimants.

In line with RBI's directives, banks have been instructed to display the list of unclaimed deposits in accounts inactive for ten years or more on their websites.

The aim is to locate the customers or legal heirs, in the case of deceased account holders, to return unclaimed deposits to the rightful claimants.

Banks have also been directed by RBI to formulate a board-approved policy on the classification of unclaimed deposits, establish a grievance redressal mechanism for quick resolution of complaints, maintain proper record-keeping, and conduct periodic reviews of unclaimed deposit accounts.

RBI has set up a centralised web portal called Unclaimed Deposits Gateway to Access Information (UDGAM), allowing users to search for unclaimed deposits across multiple banks.

Furthermore, RBI has launched the '100 Days 100 Pays' campaign, urging banks to trace and settle the top 100 unclaimed deposits of every bank in each district within a 100-day timeframe, from June 1, 2023, to September 8, 2023.

At the end of the campaign, 31 major banks, constituting more than 90 percent of unclaimed deposit balances with the DEA Fund, refunded Rs 1,432.68 crore.