Unlocking idle wealth and improving financial transparency, Finance Minister Nirmala Sitharaman has directed banking and financial regulators to identify and return ₹78,213 crore of unclaimed deposits to their rightful owners. The announcement was made during the 29th meeting of the Financial Stability and Development Council (FSDC) held on Tuesday.
The minister stressed the urgent need to simplify the KYC process, especially for NRIs and the elderly, to improve accessibility and promote trust in the Indian banking ecosystem. The unclaimed funds include dormant bank deposits, unclaimed shares and dividends, insurance payouts, and pension funds.
Unclaimed Deposits Surge by 26% in a Year
According to the latest Reserve Bank of India (RBI) data, the total unclaimed deposits in banks have risen sharply by 26% in just one year, reaching ₹78,213 crore by the end of March 2024. In comparison, the figure stood at ₹62,225 crore at the end of March 2023, with a significant portion lying in the Depositor Education and Awareness (DEA) Fund.
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The growing amount of idle funds has sparked concerns about regulatory outreach and the financial inclusion of legacy account holders and beneficiaries. Many accounts remain untouched due to death of account holders, migration, missing documentation, or heirs being unaware of the funds.
Unclaimed amounts include:
- Inoperative savings and fixed deposit accounts
- Unclaimed dividends and shares
- Lapsed or unclaimed insurance payouts
- Pension and provident fund contributions
District-Level Camps and Simplified KYC Framework Proposed
In a proactive measure, the Finance Minister instructed regulators including RBI, SEBI, IRDAI, PFRDA, and MCA to conduct special district-level camps to locate beneficiaries and facilitate claim settlements. The camps will offer in-person assistance, documentation guidance, and grievance redressal.
During the meeting, Sitharaman emphasized modernizing the Know Your Customer (KYC) process to ensure broader access, especially for non-resident Indians (NRIs) and senior citizens. The goal is to reduce procedural friction and create a digitally inclusive financial landscape.
“We must return this unclaimed wealth to the people it belongs to. It’s not just a matter of accounting, it’s a matter of justice and outreach,” the Finance Minister said.
Present at the meeting were top financial leaders including RBI Governor Shaktikanta Das, SEBI Chairman Tuhin Kanta Pandey, and IFSCA Chairman K Rajaraman, along with officials from IRDAI, PFRDA, and IBBI.
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How to Check for Unclaimed Deposits: UDGAM Portal Guide
To make the process user-friendly, RBI has launched the UDGAM portal (udgam.rbi.org.in), which allows individuals to search for unclaimed deposits across multiple banks using personal identity details.
Steps to check unclaimed deposits on the UDGAM Portal:
- Visit udgam.rbi.org.in and click on Register
- Fill in the required personal details and create a password
- Enter the OTP received on your registered mobile number
- Login to the portal and select the bank name
- Enter identity details such as PAN, Voter ID, Passport, or License number
- Click Search
- If any unclaimed deposit is found in your name, it will be displayed on the screen
The initiative empowers citizens to locate forgotten or unknown funds without needing to visit physical branches. It is expected to help lakhs of families recover wealth that has remained idle due to lack of awareness or complex processes.