Have you ever invested in term deposits long ago and lost track of them? Ever wondered about the idle investments your grandparents made that you’d like to retrieve? As of February 2023, there are unclaimed deposits totalling ₹35,000 crore with banks, according to the Reserve Bank of India (RBI).

To address this issue, the RBI launched a campaign named “100 Days, 100 Pays,” in which banks were instructed to identify and settle the top 100 unclaimed deposits from each district within 100 days. While the campaign concluded in August, there is still more to be unearthed. Here we explain what unclaimed deposits are, what happens to them, and how to reclaim them.

What are unclaimed deposits?

Unclaimed deposits typically consist of balances left in savings or current accounts that have been inactive for at least 10 years, or term deposits that have gone unclaimed for more than a decade since maturity. There can be various reasons for these deposits remaining unclaimed. People might open accounts, use them infrequently, and eventually forget about them, or the heirs and beneficiaries may lack awareness if the account holder passes away. It could also happen when an account holder relocates without informing the bank.

Banks are required to report the number of such unclaimed deposits and their respective amounts to the RBI. These unclaimed deposits are then transferred to the RBI’s Depositor Education and Awareness Fund (DEAF). Unclaimed fixed deposits, when matured and unpaid, earn interest at the savings bank rate.

How to track and claim

RBI mandates that banks provide a list of customers with unclaimed deposits and inactive accounts, along with their names and addresses.

After checking the details on the website, you can visit the bank branch with a properly filled claim form, deposit receipts, and KYC documents to initiate the claim process.

If the claim pertains to an old account from a time before digital banking, you may face inconvenience. In that case, it is advisable to visit your home branch. After verification, the bank transfers the claimed amount, along with any accrued interest.

There is no specific time limit for filing claims, but banks must settle such requests within 15 days of receiving all supporting documents, including original passbook/term deposit receipt, KYC documents, latest passport size photo and duly filled in and signed KYC.

If the account holder dies without a registered nominee, the legal heir can claim the funds by following the instructions in the will or by providing necessary documents, such as a succession certificate, a notarised death certificate and a duly filled and signed deceased claim settlement form and, depending on the bank’s requirements, an indemnity and a no-objection certificate from all family members.

UDGAM portal

Visiting multiple banks can become quite cumbersome. To streamline this process, the RBI introduced a consolidated web portal called “UDGAM” (Unclaimed Deposits – Gateway to Access InforMation) on August 17.

This portal provides centralised data regarding unclaimed deposits across multiple banks in one place. Presently, around 30 banks have joined the portal, including major ones like SBI, ICICI Bank, and HDFC Bank. UDGAM enables users to identify their unclaimed deposits and accounts, allowing them to either claim the deposit amount or reactivate their accounts at their respective banks.

To access UDGAM, visit the website https://udgam.rbi.org.in/unclaimed-deposits/#/register . Register by providing your mobile number, full name, and creating a new password.

Then, log in with your registered credentials and an OTP.

On the home page, enter the account holder’s name, select the relevant banks, and hit the search button. It will display potential deposits.

You can also select all banks at once if you are unsure which bank holds your unclaimed deposits. The portal will redirect you to the respective bank’s webpage, where you can obtain the claim form and start the process.

Take action

In conclusion, to prevent your deposits from going unclaimed, take specific steps: regularly review bank statements, update contact details when they change, consider opening a joint FD with a family member or a trusted individual instead of holding it singly, and appoint a nominee who can transfer the deposit amount to beneficiaries in the event of your demise.

Recovering unclaimed deposits is essential, and the process is now more accessible and centralised through the UDGAM portal, making it easier for individuals to reclaim their long-forgotten funds.

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