How To Claim Unclaimed Deposits With UDGAM?

According to the Reserve Bank of India (RBI) data for 2021, 31.08 crores are lying unclaimed in various bank accounts across the country. Data suggests the Number of Accounts With ‘Unclaimed Deposits’ in ‘Public Sector Banks’ Crosses 10 Crore.

But there’s no need to overthink how to claim unclaimed deposits when there’s an easy and fast way to find out about your unclaimed deposits right now. The Reserve Bank of India has recently launched a centralized web portal called UDGAM (Unclaimed Deposits – Gateway to Access information) for the public to search their unclaimed deposits across multiple banks in one place.

In this article, we will go over all you need to know about how to claim unclaimed deposits, kicking off with the basics. We will also go through how to use the RBI website efficiently and provide some ideas and suggestions to help you keep track of your deposits in the future. So, let’s get this party started!

What are Unclaimed Deposits?

Have you ever opened a bank account just to forget about it? Or have you ever deposited money in a bank and not claimed it for years? If you answered yes, how to claim these unclaimed deposits is more important to you than to anybody else.

Unclaimed deposits are the money lying idle in bank accounts that have not been operated or claimed by the customers for a long time. According to the RBI, a deposit is classified as ‘unclaimed’ if the customer hasn’t made any transaction using that account for at least 10 years. These deposits may include savings accounts, fixed deposits, recurring deposits, current accounts, or any other type of deposit account.

You may wonder why people leave their money unclaimed in banks. Now, there could be various reasons for this, such as:

• The customer may have passed away without informing the nominee or legal heir about the account.
• The customer may have changed their address, phone number, email, or other contact details without updating the bank.
• The customer may have lost or misplaced their passbook, checkbook, ATM card, or other documents related to the account.
• The customer may have multiple accounts in different banks and may not remember all of them.
• The customer may have no need or interest in using the account.

Whatever the reason, unclaimed deposits are a massive loss for both the customers and the banks. The deposits lying unclaimed after the expiry of 3 months after 10 years must be transferred to the RBI’s Depositor Education and Awareness (DEA) Fund monthly.

The balances in the DEA Funds may be used by the RBI for depositor interest or other purposes connected to depositor interest as authorized by the RBI. The customers lose their hard-earned money and the interest on it. The banks lose their potential business and goodwill. Moreover, unclaimed deposits are also vulnerable to fraud and misuse by unscrupulous elements.

Therefore, the customers and the banks need to track and know more about how to claim unclaimed deposits in the Bank.

Overview of the UDGAM Portal

The number of unclaimed deposits transferred to the RBI has decreased from 48,262 crores in March 2022 (in FY 2021-22) to Rs. 35,012 crores in February 2023 (in FY 2022-23) as a result of the RBI’s proactive activities to raise awareness about ‘how to claim unclaimed deposits.’

Among these initiatives to help customers learn how to claim unclaimed deposits, the RBI launched UDGAM (Unclaimed Deposits – Gateway to Access Information) on August 17, 2023.

UDGAM is a centralized web portal accessible to the public to search their unclaimed deposits across multiple banks in one place. Currently, only seven banks are included in the UDGAM site; however, this service will be extended to other Banks by October 15, 2023.

The seven Banks in the list include-

1. State Bank of India (SBI)
2. Punjab National Bank (PNB)
3. Central Bank of India (CBI)
4. South Indian Bank Ltd
5. Dhanlaxmi Bank Ltd
6. DBS Bank India Ltd
7. Citibank

The “unclaimed deposits” that are covered under the umbrella of UDGAM include-

1. Savings Account
2. Current Account
3. Fixed Deposits
4. Credit account
5. Loan account
6. ATM Balances
7. Unpaid Demand Drafts/ Banker’s Cheques
8. Margin Money issued against Letter of Guarantee
9. Unadjusted NEFT Credit Balances

You may simply identify and track your unclaimed deposits on the UGDAM site by entering the appropriate user credentials. UDGAM employs industry-leading AI technology to enhance the user experience.

How to Find Unclaimed Deposits from the UDGAM Portal?

If you’ve learned what constitutes an unclaimed deposit but are still unsure how to claim unclaimed deposits, follow the steps below-

Step 1: Register as a user on the UDGAM portal. Put in your-

• Name
• Date of birth
•  PAN
• Aadhaar
• Mobile number
• Email, etc.

Then, create a password. You will also receive an OTP on your mobile number and email for verification.