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According to the new guidelines, banks will be required to prominently display details of unclaimed deposits on their websites, allowing account holders and nominees to search for their funds using a public search feature.
Starting April 1, banks across India will adopt a standardised format to simplify the process of reclaiming unclaimed deposits, which have now exceeded Rs 78,213 crore. The developmeent comes as part of the Reserve Bank of India's (RBI) updated guidelines aimed at streamlining the retrieval of dormant funds and inactive accounts, according to sources familiar with the matter.
According to the new guidelines, banks will be required to prominently display details of unclaimed deposits on their websites, allowing account holders and nominees to search for their funds using a public search feature. To facilitate the process, a standardised set of application and declaration forms, along with a uniform list of required documents, will be introduced.
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Applicants will need to provide essential information such as their name, mobile number, and address for verification. Bank branches will then process these applications accordingly.
A senior public sector bank official confirmed that the changes align with the recommendations of a dedicated working group formed to address the issue of unclaimed deposits. "The recommendations have been accepted, and from FY26, an online retrieval mechanism will be fully operational," the official said.
The working group, comprising senior bankers from public sector banks, was established last year following consultations with the RBI, government authorities, and other stakeholders. The standardised format developed by public sector banks will also be shared with private banks through the Indian Banks' Association to ensure a seamless implementation across the financial sector.
"Once a customer submits the required details, the bank will reach out for any additional verification before transferring the funds to the verified account," an industry executive explained.
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Currently, individuals seeking to recover unclaimed deposits must check their status via RBI's UDGAM portal before visiting their respective bank branch to initiate a claim. Deposits that remain inactive for over 10 years are transferred to the RBI's Depositor Education and Awareness (DEA) Fund. As of March 2024, this fund holds Rs 78,213 crore, reflecting a 26% increase from the previous year.
In an additional step toward simplifying financial settlements, the Banking Laws (Amendment) Bill, 2024—introduced in August—now permits up to four nominees per bank account, an increase from the previous limit of one. Finance Minister Nirmala Sitharaman has also directed financial regulators to expedite the settlement of unclaimed deposits across multiple financial instruments, including bank accounts, shares, dividends, mutual funds, and insurance claims.
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