RBI launches UDGAM, a web portal for locating unclaimed deposits across various banks

The governor of the Reserve Bank of India (RBI) on Thursday, has unveiled UDGAM (Unclaimed Deposits - Gateway to Access information), a centralised web service that allows users to “search their unclaimed deposits across numerous institutions at one place.”

“This portal has been developed by RBI for use by members of public to facilitate and make it easier for them to search their unclaimed deposits across multiple banks at one place,” RBI said in a press release.

As part of the Statement on Developmental and Regulatory Policies dated April 6, 2023, RBI had announced the creation of a centralised web facility for locating unclaimed deposits. “Given the increasing trend in the amount ofunclaimed deposits, RBI has been undertaking public awareness campaigns from time to time to sensitise the public on this matter. Further, through these initiatives, the RBI hasbeen encouraging members of public to identify and approach their respective banks for claiming unclaimed deposits,” the banking regulator said.

According to RBI, the web portal would help customers find their unclaimed deposits and accounts so they may either submit a claim for the deposit amount or activate their deposit accounts at their respective banks. The platform was created in partnership by participating banks, Indian Financial Technology & Allied Services (IFTAS), and Reserve Bank Information Technology Pvt Ltd (ReBIT).

Users will initially have access to information about their unclaimed deposits from the seven banks now represented on the portal. State Bank of India, Punjab National Bank, Central Bank of India, Dhanlaxmi Bank Ltd, South Indian Bank Ltd, DBS Bank India Ltd, and Citibank N.A. are the seven banks.

RBI said that the search facility for other banks would be made available gradually by October 15, 2023.

What are unclaimed deposits?

In India, there are several inactive savings and current accounts. A sum in an account is regarded as an unclaimed deposit after ten years of inactivity. The same holds true for recurrent and fixed deposits that are not reclaimed within ten years of maturity.

Banks transfer these unclaimed deposits to the Depositor Education and Awareness Fund, which is managed by the RBI.

Although the depositor can go to a bank to retrieve these deposits with interest, the process can be complicated by the decision of which bank to go to and how many banks.

Since visiting each bank and completing the paperwork for each family member can be tedious, RBI has initiated the UDGAM platform, allowing users to search for unclaimed deposits across banks.

Presently, India has unclaimed deposits worth Rs 35,000 crore. RBI’s initiative should ensure awareness about such deposits and provide clarity on how the depositor can make their claims.

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