The Reserve Bank of India (RBI) has initiated the ‘100 Days 100 Pays’ campaign from June 1st, aimed at identifying and resolving the top 100 unclaimed deposits across banks.
This comprehensive campaign encompasses all banks in 100 districts, supporting the RBI’s mission to reduce the volume of unclaimed deposits.
The central bank aims to trace and return these funds to their rightful claimants. If there has been no account activity for 10 years or more, the funds are categorized as unclaimed deposits.
Reasons Behind Unclaimed Deposits
Unclaimed deposits are transferred by banks to the Depositor Education and Awareness (DEA) Fund, managed by the RBI. However, depositors retain the right to claim their funds at any point.
The increase in unclaimed deposits is attributed to individuals failing to close their savings or current accounts.
In many cases, these funds belong to depositors who have passed away, and their nominees or legal heirs are unaware or do not come forward to claim the money.
Magnitude of Unclaimed Deposits
In a written response to a question in the Lok Sabha, Minister of State for Finance Bhagwat Karad revealed details about unclaimed deposits in banks.
As of February 2023, public sector banks (PSU Banks) held unclaimed deposits worth Rs 35,012 crore.
State Bank of India topped the list with unclaimed deposits of approximately Rs 8,086 crore, followed by Punjab National Bank with Rs 5,340 crore, Canara Bank with Rs 4,558 crore, and Bank of Baroda with Rs 3,904 crore.
Methods for Retrieving Unclaimed Deposits
Every bank is required to publish details of unclaimed accounts on its website, including information to help identify the account holders easily.
Customers can visit the bank branch after reviewing the details online and complete Know Your Customer (KYC) formalities along with the claim form.
Centralized Web Portal for Assistance
In addition to the campaign, the RBI intends to establish a centralized web portal where individuals can obtain information about unclaimed deposits across different banks.
The use of Artificial Intelligence (AI) will enhance search results, ensuring people gain awareness of their unclaimed funds.
Currently, individuals need to visit various bank websites to inquire about unclaimed deposits.
The new web portal will provide a one-click solution, enabling individuals to access information about all unclaimed bank deposits.
Sanchit Garg, co-founder and CEO of GLC Wealth Advisors LLP, expressed that the RBI’s efforts can greatly aid in resolving cases of unclaimed deposits.
