The Reserve Bank of India (RBI) has introduced the UDGAM (Unclaimed Deposits – Gateway to Access inforMation) web service, aimed at simplifying the process for individuals to locate their unclaimed deposits across various institutions from a single platform.
According to the RBI, this online service will aid customers in identifying and engaging with their respective banks to either claim their unclaimed funds or activate their dormant deposit accounts.
The collaboration between the Reserve Bank Information Technology Pvt Ltd (ReBIT), Indian Financial Technology & Allied Services (IFTAS), and partnering financial institutions led to the creation of this portal. Presently, individuals can access details about their unclaimed deposits from seven banks listed on the portal, including State Bank of India, South Indian Bank Ltd, Punjab National Bank, Citibank N A, Central Bank of India,DBS Bank India Ltd, and Dhanlaxmi Bank Ltd.
The RBI has revealed that functionality to search for deposits from other banks on the platform will be incorporated by October 15, 2023. The concept of a centralized web gateway was introduced by the RBI in its monetary policy announcement on April 6, 2023.
The central bank emphasized its commitment to safeguard depositors’ interests, implementing measures to prevent newer deposits from becoming unclaimed and ensuring that existing unclaimed deposits are rightfully returned to legitimate owners or beneficiaries through proper procedures.
Back in April, RBI Deputy Governor Mr. M Rajeshwar Rao indicated that the unclaimed deposits retrieval portal would be operational within 3-4 months. Deposits that remain unclaimed in a bank for a period of ten years are subsequently transferred to the RBI’s Depositor Education and Awareness (DEA) fund.
Based on the latest data, public sector banks (PSBs) submitted unclaimed deposits totaling US$ 4.21 billion (Rs. 35,012 crore) to the RBI, pertaining to accounts inactive for ten years or more as of February 2023. The cumulative count of unclaimed accounts reached 102.4 million.
