A savings or current account with no customer-induced transaction for more than 24 months is classified as inoperative.
Unclaimed deposits in the Depositor Education and Awareness (DEA) Fund have risen.
The finance ministry told the Rajya Sabha recently that the amount increased from Rs 90,545 crore on June 30, 2025 to Rs 98,073 crore on January 31, 2026.
Where to look for old, forgotten accounts
- Check old passbooks, chequebooks, FD receipts
- Review locker keys and locker-rent receipts for banking clues
- Check Form 26AS, AIS and past income-tax returns
- Use TDS on bank interest to spot forgotten deposits
- Search e-mail and SMS archives for old banking relationships
- Review standing instructions for insurance premiums, SIPs and utility bills
- Check broking, mutual fund and insurance folios for bank mandates
- Search banks' web sites for unclaimed-account-holder lists
What are unclaimed deposits?
A savings or current account with no customer-induced transaction for more than 24 months is classified as inoperative.
A credit balance in a savings or current account becomes unclaimed after 10 years without a transaction.
"A term deposit becomes unclaimed if it is not claimed for 10 years from its maturity date rather than from the date it was booked," says Prashant Mishra, founder and CEO, Agnam Advisors.
Interest credits or service charges do not reset the clock.
After 10 years, the bank transfers the money to the DEA Fund.
"The bank must transfer the eligible account and amount on the last working day of the month following completion of 10 years of continuous inactivity or unclaimed status," says Rajat Dutta, founder and initiator, Inheritance Needs Services.
Claim remains alive
The transfer does not affect ownership.
"Transfer to the DEA Fund does not take away the depositor's right to claim the money," says Adhil Shetty, CEO, BankBazaar.
The Reserve Bank of India acts as the custodian of the DEA Fund.
"It uses amounts in the Fund for depositor awareness and educational programmes," says Dutta.
Eligible interest-bearing deposits earn simple interest at 3 per cent in the DEA Fund.
How to search on UDGAM
RBI's UDGAM portal allows heirs to search for unclaimed bank accounts and deposits.
Users must register, log in and search.
"The user can select one bank, multiple banks or all banks for the search," says Dutta.
The user must enter the account holder's name, bank name and other details.
The portal checks its database and provides a response.
A successful search leads to the identification of the bank.
The heir must then approach the bank.
"The exact balance is confirmed by the bank. The subsequent process is handled offline at the branch where the account was held," says Mishra.
If the depositor is alive, fresh know-your-customer (KYC) formalities are completed and the account is reactivated.
If the depositor is dead, the matter becomes a deceased-claim settlement.
The bank pays the claimant and seeks reimbursement from the DEA Fund.
Nomination simplifies matter
A nominee makes the settlement process simpler.
Under Section 45ZA of the Banking Regulation Act, 1949, the nominee acquires the rights of the depositor vis-à-vis the deposit.
"The bank must not insist that a nominee produce a succession certificate, letters of administration or probate, or seek an indemnity or surety," says Anjali Jhawar, advocate, DM Harish & Co.
"The bank typically requires the death certificate and the nominee's KYC documents," says Shweta Tungare, cofounder, LawTarazoo.
No nominee, more paperwork
A simplified settlement procedure can apply when the account has no nominee or survivorship clause and there is no will.
"It also requires that there be no contesting claim or known court order restraining payment," says Jhawar.
Claims up to the applicable threshold limit can be settled based on prescribed documents: A claim form, a death certificate, and an indemnity bond.
Tungare adds that banks may also seek an affidavit from the heirs or a simple family letter.
"Claims above the threshold limit are settled on the basis of a succession certificate or legal-heir certificate issued by a competent authority," says Jhawar.
High-value estates or complicated family situations require court intervention.
"If the deceased left a will, the bank may require probate," says Tungare.
Where the deceased died intestate and left substantial unclaimed deposits, the heirs are likely to need letters of administration.
"This court order appoints an administrator, granting them the authority to manage and distribute the deceased's bank balances to the rightful heirs," says Tungare.
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Feature Presentation: Ashish Narsale/Rediff
