Summary of this article
RBI UDGAM portal now integrates 30 banks for searches
Legal heirs can trace unclaimed deposits through one platform
Supreme Court hears PIL seeking unified dormant assets mechanism
The Reserve Bank of India (RBI) has informed the Supreme Court that 30 banks have now been integrated with the Unclaimed Deposits Gateway to Access Information, or the UDGAM portal. The move is expected to make it easy for users, especially legal heirs, to look for unclaimed bank deposits through a single online platform.
The submission was made before a Supreme Court Bench comprising Justice Sandeep Mehta, Justice Vikram Nath and Justice Vijay Bishnoi during the hearing of a public interest litigation (PIL) filed by Sucheta Dalal.
What Is The RBI UDGAM Portal?
The UDGAM portal, launched by RBI in August 2023, allows individuals to search for unclaimed deposits across multiple banks in one place. Previously, individuals had to visit the websites of different banks separately to check whether any inactive account or unclaimed amount existed.
The portal allows users to search using details, such as the accountholder’s name, bank name, mobile number, Permanent Account Number (PAN), voter ID, driving licence or date of birth, depending on the bank’s search criteria.
The platform is particularly useful for families trying to trace deposits belonging to deceased relatives. In many cases, family members may not know where the accounts were held, especially if the depositor had multiple bank accounts.
What Are Unclaimed Deposits?
An unclaimed deposit refers to money lying in savings accounts, fixed deposits (FDs) or other bank accounts that have remained inactive for 10 years or more. Once this period is completed, banks transfer the amount to the RBI’s Depositor Education and Awareness (DEA) Fund.
There are a few reasons for it. A customer might not remember an old account, move to a new city without notifying the information, or pass away without notifying family members about the account.
Depositors or legal heirs can still receive the funds even after the funds have been transferred to the DEA Fund, by submitting the necessary documentation to the concerned bank.
Why Has The Matter Reached The Supreme Court?
The PIL filed in the Supreme Court sought a more centralised system to help citizens locate dormant financial assets. The petition highlighted that many families face difficulties in tracing bank deposits, insurance proceeds, shares and other financial holdings after the death of a family member.
During the hearing, RBI informed the Supreme Court about the progress made through the UDGAM portal and the integration of 30 banks. The court is also examining whether a broader unified framework can be developed for tracing unclaimed financial assets.
How Can Users Access The Portal?
Users can go to the RBI UDGAM portal and fill the basic information to initiate the search. In case any unclaimed deposit is found, the claimant has to contact the respective bank and follow the claim procedures by submitting documents of identity, relationship documents and other documents needed by the bank for the claim.
The portal only helps users identify possible unclaimed deposits. The final verification and settlement process remains with individual banks.
FAQs
1. Can Legal Heirs Claim Unclaimed Deposits?
Yes. Legal heirs or nominees can make a claim for the unclaimed deposits by providing proof of death, identity proof, documents related to succession in the concerned bank.
2. Does Money In Unclaimed Accounts Expire?
The money does not expire even after being transferred to the RBI’s DEA Fund. Depositors and legal heirs can still claim the amount through the bank.
3. Is The UDGAM Portal Free To Use?
Yes. The RBI UDGAM portal is free for users to search for unclaimed bank deposits.
