India is sitting on nearly Rs 1 lakh crore of unclaimed bank deposits, with the RBI launching the UDGAM portal to help owners reclaim their funds and increase accountability across banks.
India has nearly Rs 1 lakh crore sitting in dormant bank deposits and accounts that have been transferred to the Reserve Bank of India’s Depositor Education and Awareness Fund, underscoring how easily money can be forgotten when contact details go out of date or account holders die without heirs being aware of the assets. The RBI’s UDGAM portal, short for Unclaimed Deposits-Gateway to Access Information, has been built to help customers search for such balances across participating banks in one place. According to the RBI, the platform is a search facility only; claim settlement still has to be done through the bank concerned.
Parliamentary data cited by the government showed that Rs 98,073 crore had been moved into the DEA Fund as of January 31, 2026. Separate figures also placed the total at Rs 90,545 crore as of June 30, 2025, while another set of parliamentary data put it at Rs 86,917.08 crore as of June 30, 2026. Because these figures were reported for different dates, they should not be read as a straight month-to-month series.
An account is generally treated as inoperative after two years without a customer-initiated transaction, and if the money remains unclaimed for 10 years, the balance is transferred to the RBI’s DEA Fund. That transfer does not extinguish the right to claim the money. Customers, nominees and legal heirs can still approach the relevant bank, complete the required formalities and receive payment, after which the bank is reimbursed by the RBI. The RBI’s FAQ on UDGAM says the portal had 30 participating banks as of March 4, 2024, covering about 90% of unclaimed deposits in the fund.
The RBI has also pressed banks to make more effort to trace the rightful owners of dormant balances. Banks are required to run special drives, publish details of unclaimed deposits on their websites and contact customers by letter, email or SMS where details are available. Email and SMS reminders are meant to be sent quarterly. In October 2025, the RBI introduced an incentive scheme under which banks can receive 5% to 7.5% of an unclaimed deposit, subject to a cap, for successfully settled claims.
The drive is part of a wider government effort to return unclaimed financial assets to their owners. During the nationwide “Your Money, Your Right” campaign between October and December 2025, special camps were held in 748 districts, and government data said that by February 28, 2026, assets worth Rs 5,777 crore linked to 22.95 lakh claims had been returned. The campaign covered bank deposits as well as insurance proceeds, mutual funds, shares and dividends. For households, the simplest safeguard remains practical housekeeping: keep nomination details current, update contact information and retain records that can help heirs prove their claim later.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
