Government Moves Unclaimed Deposits to RBI Fund
The Indian government has revealed that over ₹72,000 crore in unclaimed bank deposits has been transferred to a fund overseen by the Reserve Bank of India (RBI). This significant amount includes balances that have not been accessed for a decade or more, highlighting a substantial pool of unclaimed funds within the banking system.
Pankaj Chaudhary, the Minister of State for Finance, made this announcement in a written reply to the Rajya Sabha, indicating that these funds will now be held in the Depositor Education and Awareness (DEA) Fund, aimed at enhancing financial literacy and supporting various banking initiatives.
Importance of Unclaimed Funds
Unclaimed deposits consist of savings or current accounts that have been inactive for a period of ten years, along with term deposits that have matured but have not been claimed. Chaudhary elucidated that as of January 28, 2026, unclaimed deposits with public sector banks tallied to ₹60,571.02 crore, while private banks accounted for ₹9,607.76 crore and foreign banks contributed ₹2,275.01 crore.
This transfer symbolizes a pressing issue within India’s banking landscape, raising awareness about the significant number of accounts left untouched by consumers. The move aims to not only organize these funds under a centralized entity but also eliminate long-term inaccessibility, allowing for better financial governance.
Government Initiatives to Trace Deposits
Centralized Online Platform Launched
In an effort to improve access to these funds, the RBI and government have implemented several measures aimed at helping depositors trace their unclaimed money. One major initiative is UDGAM (Unclaimed Deposits – Gateway to Access Information), a centralized online platform allowing individuals to search for unclaimed deposits across various banks.
This innovative solution consolidates information, making it simpler for customers to access their funds. Chaudhary noted that the platform serves as a bridge to encourage rightful claimants to retrieve their unclaimed money, an initiative considered vital for enhancing depositor confidence.
Legislative Changes for Better Access
Further emphasizing accessibility, the Banking Laws (Amendment) Act, 2025, has been introduced to allow customers to register multiple nominations—up to four, whether simultaneous or successive—ensuring a greater likelihood of funds reaching the rightful beneficiaries. “We must make it easier for people to claim their deposits,” said Chaudhary.
Utilization of the Depositor Education and Awareness Fund
The DEA Fund is not merely a storage vault for unclaimed money; it is actively utilized for various initiatives promoting financial awareness among the public. From funding financial literacy programs targeted at excluded sections of society to conducting seminars on safe banking practices, the fund plays a pivotal role in improving the overall financial ecosystem.
Chaudhary elaborated that the government is committed to using the DEA Fund to finance projects that educate consumers about banking and investments, ultimately aiming to reduce the number of dormant accounts in the nation. “Improving financial literacy is our priority, and we will continue to implement strategies that facilitate better banking habits,” he remarked.
Future Expectations and Financial Stability
The measures surrounding unclaimed deposits and financial literacy are anticipated to have a broad impact on overall financial stability in the country. By addressing the backlog of unclaimed funds systematically, these initiatives may encourage individuals to manage their accounts more actively, reducing the accumulation of similar funds in the future.
Furthermore, the Minister’s report noted that the National Investment and Infrastructure Fund (NIIF) has a total corpus of ₹33,249 crore, with investments diversified across various sectors including infrastructure and renewable energy. The government is keen on ensuring that these funds lead to tangible benefits for the economy.
Additional Government Actions
Priority Sector Lending for Cooperative Societies
In response to other inquiries in Parliament, Chaudhary announced that loans sanctioned by banks to the National Cooperative Development Corporation (NCDC) from January 19, 2026, would qualify as priority sector lending. This new classification aims to enhance liquidity and support agricultural and cooperative societies across the nation.
The expanded definition allows banks outside of regional rural banks, urban cooperative banks, small finance banks, and local area banks to engage more robustly with the cooperative sector. This move is expected to foster growth in cooperative lending, benefitting millions of farmers and small business owners reliant on these institutions.
Ongoing Regulatory Efforts by the RBI
The RBI remains active in regulatory measures to ensure financial safety and stability within the banking sector. The government stated that ongoing initiatives are in place to mitigate risks associated with unsecured loans and enhance consumer protection. These efforts are aimed at building trust within the financial system.
Public Awareness and Engagement
The government and RBI’s combined efforts signify a shift towards more proactive governance in managing unclaimed funds and enhancing public trust in the banking sector. With platforms like UDGAM, officials are optimistic about a future where consumers are more informed and engaged with their banking practices.
Chaudhary concluded with a hopeful note, mentioning that the ongoing initiatives are a stepping stone toward a financial landscape where individuals feel secure in their banking transactions and are encouraged to keep their financial affairs in order.
Conclusion
The transfer of ₹72,000 crore in unclaimed deposits to the RBI’s DEA Fund is a significant step not only in organizing and utilizing these resources effectively but also in reinforcing financial education and security among Indian consumers. As government initiatives unfold, there is an overarching aim to minimize unclaimed accounts and enhance the accessibility of funds, empowering citizens to reclaim their deposits and make informed financial decisions.
Overall, the government’s strong commitment to improving financial literacy, the establishment of UDGAM, and legislative changes present a promising framework for the future, whereby unclaimed deposits may find their way back into the hands of rightful owners.