New Delhi: The Reserve Bank of India (RBI) has taken a decisive step to address the growing pile of unclaimed deposits lying idle in banks across the country. According to the central bank, approximately ₹67,003 crore in dormant accounts is waiting to be returned to its rightful owners or legal heirs. This move is part of a broader effort to ensure that funds which have remained inactive for years are made accessible to the public.
Unclaimed deposits are bank funds that have remained untouched for extended periods. In the case of savings or current accounts, inactivity for 10 years classifies the account as dormant. Similarly, term deposits not claimed within 10 years from maturity are considered unclaimed. After this period, banks transfer these funds to the RBI-managed Depositor Education and Awareness (DEA) Fund. While the funds are not lost, they can only be accessed by claimants through proper banking procedures.
In a recent circular, the RBI has instructed banks to expedite the process of identifying dormant account holders and returning these funds. A nationwide outreach campaign is scheduled from October to December 2025, targeting both rural and semi-urban areas where awareness of unclaimed deposits is generally low. The campaign will utilize print and electronic media in multiple regional languages, ensuring that citizens are informed about their right to reclaim dormant funds.
Public sector banks account for a substantial portion of unclaimed deposits. As of June 30, 2025, they held ₹58,330.26 crore, representing nearly 87% of the total dormant funds. The State Bank of India leads with ₹19,329.92 crore, followed by Punjab National Bank at ₹6,910.67 crore and Canara Bank at ₹6,278.14 crore. Private sector banks collectively hold ₹8,673.72 crore, with ICICI Bank having the highest share at ₹2,063.45 crore. These figures highlight the scale of idle funds within India’s banking sector and the importance of the RBI initiative.
Returning unclaimed deposits has multiple benefits. It strengthens financial inclusion by ensuring that all individuals, especially those in rural areas, have access to their own resources. It also reinforces trust in the banking system, reassuring the public that their money is secure and accessible. Furthermore, providing a clear legal process for claiming deposits of deceased account holders reduces disputes among heirs and streamlines financial administration.
Claimants can retrieve unclaimed deposits by approaching their respective banks with appropriate documentation. To simplify the process, the RBI has introduced the UDGAM (Unclaimed Deposits – Gateway to Access Information) portal. This centralized online platform allows individuals to search for unclaimed deposits across multiple banks in India. As of July 1, 2025, more than 8.5 lakh users had registered on the portal, signaling increasing public awareness.
The RBI’s initiative to return ₹67,003 crore in idle bank funds underscores the importance of financial inclusivity and transparency. By ensuring that dormant deposits are returned to rightful owners and heirs, the banking system not only fulfills regulatory obligations but also fosters public trust and confidence. Citizens are encouraged to check the UDGAM portal and approach their banks to claim their funds, ensuring that no money remains unjustly idle in the system.