Retired Air Force Sergeant Sunil Singh get ₹22 lakh in a 14-year-dormant account, originally seeded with just ₹1,600. This story exemplifies the ₹75,000+ crore in unclaimed deposits held by RBI as of August 2025. With RBI’s fresh initiatives, reclaiming such funds is simpler than ever. Below, we dive into the facts, rules, guidelines, and a step-by-step claiming process.
Retired Air Force sergeant’s salary Journey
Guwahati native Sunil Singh, a 65-year-old retired Indian Air Force sergeant, served two decades before retiring in 2011 amid financial woes. Relocating to Kanpur, he deposited a final ₹1,600 in his transferred salary account—then forgot it amid survival struggles.Unseen, it grew over 14 years via pension arrears, scheme benefits, and interest into ₹22 lakh.
Last week, RBI camp officials knocked on his Barra home, Aadhaar in hand: “Your old account has ₹22 lakh.” Shock turned to tears at the bank, passbook confirming it all. “My service’s reward, returned just in time,” Sunil said gratefully.
Key Facts on Unclaimed Deposits (2025 Update)
- Scale of the Issue: Over ₹75,000 crore in unclaimed deposits lie idle in the RBI’s Depositor Education and Awareness (DEA) Fund, transferred from banks after prolonged inactivity. This includes savings, current accounts, and matured fixed deposits. An estimated 10-15% of Indians have such forgotten funds.
- Growth Drivers: Balances accrue interest even in dormancy; additional credits like pension arrears or government benefits can multiply small sums significantly, as in Sunil’s case.
- RBI’s 2025 Push: Launched on October 1, 2025, a one-year scheme (ending September 30, 2026) incentivizes banks to trace and return funds, building on a special October-December 2025 settlement quarter for accelerated claims. Banks have already reunited thousands with over ₹10,000 crore in recent drives.
RBI Rules and Guidelines on Dormant Accounts
RBI’s framework protects depositors while preventing fund erosion. Key rules, updated for 2025, emphasize proactive bank outreach and penalty-free revival:
| Aspect | RBI Rule/Guideline |
|---|---|
| Classification as Inoperative | Accounts with no customer-initiated transactions (e.g., deposits, withdrawals) for over 1 year are flagged for review; officially “inoperative” after 2 years. Excludes bank actions like interest credits or DBT/scholarship inflows. |
| Interest and Charges | Full interest accrues on inoperative savings accounts; no minimum balance penalties or dormancy fees. Reactivation is free, with optional nominal KYC fee (₹100-200 max). |
| Transfer to DEA Fund | Balances unclaimed for 10 years (savings/current) or matured term deposits unrenewed for 10 years move to RBI’s DEA Fund. Claimants recover full principal + interest (including post-transfer). Fund totals ₹75,000+ crore as of August 2025. |
| Bank Responsibilities | Quarterly notifications (letters/SMS/email) to holders; trace via introducers/nominees/heirs if unresponsive. Publish monthly unclaimed lists on websites/branches (by name/address, no PIN). Enable reactivation at any branch or via Video Customer Identification Process (V-CIP) with maker-checker approval. |
| Incentives for Banks (2025 Scheme) | Payouts from DEA Fund: 5% (up to ₹5,000) for 1-4 years dormancy; 6% (₹10,000) for 4-8 years; 7% (₹15,000) for 8-10 years; 7.5% (₹25,000) for over 10 years. Quarterly claims to RBI, processed in 30 days. |
| Special 2025 Initiatives | October-December “settlement quarter”: Mandatory door-to-door camps, UPI/Aadhaar integration for instant claims. Central UDGAM portal aggregates data across banks for easy searches. |
These guidelines ensure 100% traceability, with banks audited for compliance.
How to Claim Your Unclaimed Deposits: Step-by-Step Guide
Reclaiming is straightforward and often fee-free, especially under the 2025 scheme. Start with self-search; banks/RBI handle the rest. Here’s the process:
- Search for Unclaimed Funds:
- Visit the RBI’s UDGAM Portal (rbi.org.in → Search “UDGAM”): Enter name, mobile, PAN, or Aadhaar to scan across 50+ banks. It’s free and centralized.
- Check individual bank websites/apps (e.g., SBI’s “Unclaimed Deposits” section) for lists updated monthly.
- For ex-servicemen/pensioners: Use SPARSH portal or ECHS for flagged entitlements.
- Gather Documents:
- Valid ID (Aadhaar, PAN, Voter ID, Passport).
- Address proof (if changed).
- Account details (if known: branch, last transaction date).
- Recent passport-size photo.
- For heirs/nominees: Death certificate + relationship proof.
- Initiate Claim:
- Option 1: Online/Digital: Use bank app for e-KYC (Aadhaar OTP/video). Link to UDGAM for auto-transfer.
- Option 2: Branch Visit: Go to any branch (not just original) with a request letter (formats on bank sites, e.g., SBI). Submit docs; reactivation happens on-spot.
- Option 3: Doorstep/Agent: During RBI camps (Oct-Dec 2025), business correspondents handle KYC at home, especially in rural areas.
- Verification and Payout:
- Bank verifies identity (5-7 days max under scheme).
- Account reactivates; funds transfer to active account + accrued interest.
- Track via SMS/email; full payout within 30 days for DEA claims.
- Post-Claim Tips:
- Update nominees and link Aadhaar to all accounts.
- Monitor via RBI’s DEA alerts or apps.
- If disputed: Escalate to RBI Ombudsman (free, 30-day resolution).