Chennai: The Reserve Bank of India (RBI) has directed banks to step up efforts to return unclaimed deposits to account holders, nominees, or heirs over the next three months. The central bank has designated October to December 2025 as a focused period for clearing pending claims and reactivating dormant accounts.

Unclaimed deposits include balances in savings or current accounts with no activity for 10 years, or term deposits that remain unclaimed for a decade after maturity. These funds are transferred to the RBI-managed Depositor Education and Awareness (DEA) Fund, though claimants can access them at any time by approaching their banks.

RBI data shows unclaimed deposits have risen sharply. As of March 2024, balances stood at approximately Rs 78,213 crore, a nearly 26% increase over the previous year.

To support the drive, the RBI recently revised rules on inoperative accounts and unclaimed deposits, making it easier for customers to update KYC (Know Your Customer) documents and claim funds. Customers can now complete KYC updates at any bank branch, through video-based verification (V-CIP), or with the help of local business correspondents (BCs).

The central bank is also promoting its UDGAM portal (Unclaimed Deposits – Gateway to Access Information), which allows individuals to check for unclaimed deposits across multiple banks through a single online search. Since its launch, more than 850,000 users have accessed the platform.

Banking experts said the initiative helps clean up bank balance sheets, returns idle funds to rightful owners, and strengthens financial inclusion and trust, particularly for families unaware of dormant accounts of deceased relatives.

However, banks may face heavy operational pressure to process claims and verify documents within three months, and relaxed KYC processes such as video verification could increase fraud risks. Lack of awareness, especially in rural areas, remains a challenge.

Experts noted the RBI’s directive underscores its focus on protecting depositors and enhancing transparency in the banking system. While the three-month push is ambitious, it is expected to restore long-forgotten funds and improve public trust.