In April 2023, during the Lok Sabha session, Dr. Bhagwat Karad, the Minister of State for Finance, replied to a member query on unclaimed deposits. He said, Public Sector Banks (PSBs) transferred Rs. 35,012 crores (as at the end of February 2023) to the Reserve Bank of India (RBI) as unclaimed deposits.
The total number of accounts with unclaimed deposits stands at 10.24 crores. The State Bank of India transferred the highest amount of unclaimed deposits of Rs. 8,086 crores across 2.17 crores accounts. With such a huge amount of unclaimed deposits across so many accounts, the RBI has launched UDGAM (Unclaimed Deposits - Gateway to Access Information), a centralised portal for information on unclaimed deposits. Let us understand what the UDGAM portal is and how you can use it to claim an unclaimed deposit.
What is an unclaimed deposit?
Let us start by understanding what is an unclaimed deposit. Any bank account (savings and current) that has not been operated (no transactions) for 2 years becomes an inoperative/dormant account. Similarly, any term deposit (fixed and recurring) that has not been claimed for 2 years after maturity becomes an inoperative account.
After 10 years, an inoperative account (savings and current) or term deposit (fixed and recurring) becomes an unclaimed deposit. The bank has to transfer the amount in the unclaimed deposit account to the RBI's Depositor Education and Awareness Fund (DEAF) Account. The Rs. 35,012 crores of unclaimed deposits that Dr Bhagwat Karad referred to are lying in the RBI's DEAF Account.
What is the UDGAM portal?
The RBI wants to create awareness about unclaimed deposits so that the money can be claimed by the owner/nominee. The launch of the UDGAM portal is an initiative in this direction. The UDGAM is a centralised web portal for searching unclaimed deposits. The RBI launched the UDGAM portal on 17th August, 2023.
Using the UDGAM portal, an individual can search for their own or deceased family member’s unclaimed deposits across multiple banks at one central location. Once an individual identifies an unclaimed deposit through the UDGAM portal, they can approach the respective bank to claim the unclaimed deposit.
To begin with, the UDGAM portal can provide the search facility for details of unclaimed deposits with 7 banks, which include:
1) State Bank of India
2) Punjab National Bank
3) Central Bank of India
4) Dhanlaxmi Bank Ltd.
5) South Indian Bank Ltd.
6) DBS Bank India Ltd.
7) Citibank N.A.
The search facility for details of unclaimed deposits with other banks will be added to the UDGAM portal in a phased manner by 15th October, 2023.
The UDGAM portal can be accessed at the following link: https://udgam.rbi.org.in/unclaimed-deposits/#/login
How to search for an unclaimed deposit on the UDGAM portal?
Searching for an unclaimed deposit on the UDGAM portal is simple. You need to take the following steps:
1) One-time registration by providing your mobile number, name, and choosing a password
2) Login using your mobile number and password. You will get an OTP on your mobile. Enter the OTP and login.
3) Enter the name of the account holder, select the name of the banks (select the “All” option), and input one option (PAN, Voter ID, Driving License, Passport, date of birth). There is no need for the depositor’s account number.
4) Click on the “Search” button.
5) The search results for the unclaimed deposits with the respective bank(s) will be displayed.
6) When you click on the respective bank name, the process for claiming the unclaimed deposit will be displayed.
You can then reach out to the respective bank and claim the unclaimed deposit.
Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.