As per the Reserve Bank of India (RBI), balances in savings accounts which have not been operated for 10 years, or term deposits not claimed within 10 years from date of maturity, are classified as “unclaimed deposits”.
At the end of the financial year 2018-19, the worth of unclaimed deposits in public and private sector banks was Rs 17,784 crore that increased to Rs 42,272 crore on March 31, 2023, data from the Finance Ministry shows.
Not just public and private banks, but the RBI also takes into account the money pending with foreign banks, regional rural banks, local area banks and small finance and payment banks.
As per the ministry documents, Rs 535.42 crore was unclaimed with all banks on December 31, 1999. At the end of the calendar year 2002, this amount increased to Rs 680.05 crore. Except for a few years in between, there has been a consistent increase in the numbers since then.
SBI, National Banks Have Biggest Share
Back in 1999, State Bank of India (SBI), the largest bank in the country, had unclaimed Rs 144.26 crore. In 2013, this amount reached Rs 1,469.99 crore. In 2018, it touched Rs 2,156.33 crore and by 2020, it was Rs 3,577.56 crore. By 2023, the unclaimed balance in SBI was Rs 8,086 crore. In the over two-decade duration, the unclaimed amount with the SBI has jumped by more than 56 times.
Similarly, when it comes to public banks, the unclaimed amount stood at Rs 401.94 crore in 2000. This increased to Rs 1,944.52 crore in 2011, Rs 9,019 crore in 2018 and Rs 35,012 crore in 2023. In the last two decades, the unclaimed deposits with public/nationalised banks in India have gone up by around 90 times.
WHY UNCLAIMED DEPOSITS?
As per the RBI, deposits remained unclaimed due to a number of reasons, ranging from the death of account holders, their migration from place or country, family disputes and/or legal complications.
The growing volume of unclaimed deposits arises mainly due to non-closure of savings and current accounts which depositors do not intend to operate or due to not submitting redemption claims with banks for matured fixed deposits.
There are also cases of accounts belonging to deceased depositors, where the nominees or legal heirs do not come forward to make a claim.
WHAT HAPPENS TO THESE DEPOSITS?
The Depositor Education and Awareness (DEA) Fund Scheme, 2014, was notified by the RBI. It covers norms related to unclaimed deposits and outlines details of utilisation of fund, including promotion of depositors’ interests.
Every year, the list of these accounts is submitted to the RBI by banks and these amounts are transferred to the DEA Fund that is maintained by the RBI.
CAN YOU RECLAIM IT?
The depositors are entitled to claim the deposits from the bank where the deposits were held along with interest, as applicable.
However, despite public awareness campaigns undertaken by banks as well as RBI from time to time, the amount of unclaimed deposit is showing an increasing trend, the RBI had said.
To help such depositors or the nominees of deceased depositors identify and claim the deposits, banks already host the list of unclaimed deposits on their website with some identifiable details.
Members of public are encouraged to identify and approach the bank concerned for claiming such deposits, the RBI said in a statement.
The responsibility to claim the amount lies with the legal successors of the depositors. They have to inform the banks about the death of the depositors and file claims in relation to the balances standing at the credit of the accounts of the deceased depositors.