Forgotten Bank Balances Worth Thousands? RBI Explains How Depositors Can Claim Their Money

A large number of Indians continue to hold money in inactive bank accounts, often without realising it. These accounts typically belong to individuals who have switched banks, relocated, or whose family members are unaware of old deposits. 

According to the Reserve Bank of India’s Annual Report 2023–24, released on August 30, 2024, bank accounts that remain inactive for 10 years or more are classified as unclaimed

Such inactive bank accounts include savings, current, and term deposit accounts. The balances from these accounts are transferred to a central pool managed by the RBI, though ownership continues to remain with depositors or their legal heirs.

RBI’s UDGAM Portal Helps Track and Recover Unclaimed Deposits

To address the growing pile-up of funds locked in inactive bank accounts, the RBI launched the UDGAM portal (Unclaimed Deposits – Gateway to Access Information) in April 2023 

The portal allows individuals to search for unclaimed deposits across participating banks using basic details such as name, PAN, or registered mobile number. As per Chapter VII (Consumer Protection) of the RBI Annual Report 2023–24, unclaimed deposits transferred to the Depositor Education and Awareness (DEA) Fund stood at ₹42,270 crore as of March 31, 2024 

If an unclaimed deposit is identified on the UDGAM platform, claimants must approach the respective bank branch with valid KYC documents such as Aadhaar, passport, voter ID, or driving licence. Banks are mandated by RBI to verify claims and release the amount along with applicable interest.

Unclaimed Deposits (RBI Data)

The problem of money lying idle in inactive bank accounts has persisted despite regulatory oversight. According to the RBI Annual Report 2021–22, released on August 30, 2022, unclaimed deposits stood at ₹40,078 crore, showing a steady increase over time.

In January 2024, the central bank also launched a nationwide awareness campaign titled “Your Money, Your Right” to educate depositors about reclaiming funds.

Ground-level reporting highlights the scale of the issue. According to The Times of India, banks in Ernakulam district held over ₹307 crore in unclaimed deposits, while banks in Dakshina Kannada district accounted for ₹140 crore.

What RBI and Banks Have Said

In its Annual Report 2023–24, the RBI reiterated that unclaimed deposits “continue to remain the property of depositors or legal heirs”.

Adding to the RBI data, a LoansJagat article published in December 2024 noted that India’s total unclaimed financial assets, including bank deposits, insurance proceeds, and small savings, have crossed ₹1.84 lakh crore, with bank deposits forming a significant portion of this amount. 

The report highlighted that dormant and inactive bank accounts remain the largest contributor to unclaimed banking assets, largely due to lack of awareness among depositors and legal heirs.

Bank officials quoted by NDTV in December 2024 stated that claims linked to inactive accounts are being processed on priority, with most settlements completed within 30 days after KYC verification.

Conclusion 

Money lying in inactive accounts is not lost. With the RBI’s UDGAM portal, regulatory push, and increased public awareness, depositors and legal heirs now have a clear, structured path to reclaim forgotten savings.
 

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