RBI Introduces UDGAM to Trace Unclaimed Deposits of Rs 35000 Crore

The Reserve Bank of India (RBI) has taken an innovative initiative and introduced a digital platform named UDGAM (Unclaimed Deposits – Gateway to Access information). This centralised system aims to assist people in finding their forgotten, unclaimed bank deposits.

As of February 2023, public sector banks passed INR 35,000 crore worth of ten years or more aged unclaimed deposits to RBI. These deposits span 10.24 crore accounts, marking the scale of the issue.

State Bank of India (SBI) is at the top of the list of banks with unclaimed deposits. They hold INR 8,086 crore, followed by Punjab National Bank, Canara Bank, and Bank of Baroda.

Encouraging Banks to Act

The Reserve Bank has recommended to every bank to launch initiatives to trace the respective customers or legal beneficiaries of dormant accounts. A dormant account refers to an account with no transactions performed over two years. Moreover, RBI advises them to display the list of unclaimed deposits or dormant accounts inactive for ten years or more on their respective websites.

Aiding Users through UDGAM Web Portal

The UDGAM web portal shall act as a support system for users to track their unclaimed deposits and dormant accounts. This digital platform will empower account holders to reclaim their deposits or bring their accounts back into operation at their respective banks.

The development of this informative portal has been a joint effort of Reserve Bank Information Technology Pvt. Ltd. (ReBIT), Indian Financial Technology & Allied Services (IFTAS), and involved banks.

As per RBI’s records, deposits amounting to Rs 35,000 crore lay unclaimed as of February 2023, transferred from public sector banks earlier this year. Accounts like savings or current accounts not operated for a decade, or specific bank deposits not claimed after ten years since maturity, are classified as “Unclaimed Deposits”. These unclaimed sums are then transferred by banks to RBI-maintained “Depositor Education and Awareness” Fund (DEAF).

Progressive Functioning of UDGAM

Initially, users can view the details of their unclaimed deposits for seven banks on the portal. The information on remaining banks will be introduced gradually, expected to be available by October 15, 2023.

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