Unclaimed Bank Deposits Surge: Causes and Recovery Drives
Why in the news
Unclaimed deposits in banks have climbed steeply, reflecting low awareness, dormancy and trouble tracing beneficiaries, even as recovery drives begin.
About unclaimed deposits
- Funds not touched or claimed for a set period: savings balances, FDs, RDs, unpaid interest, matured deposits not withdrawn.
- Dormancy: no transactions for usually 24-36 months.
- RBI rule: banks shift long-unclaimed money to a designated fund and try to trace holders or nominees.
- Claim: holder or nominee shows KYC and proof of ownership.
Recovery efforts
| Initiative | Details |
|---|---|
| Your Money, Your Right | PM Modi, 10 December; nearly ₹2,000 crore returned (~3% as of 30 June 2025) |
| Special campaign | By Finance Minister Nirmala Sitharaman; three months from October; identify claimants, speed recovery |
Reasons for the rise
- More accounts through financial inclusion.
- Long-dormant accounts.
- Missing nominee details or outdated KYC.
- Holders dying with no timely claim by heirs.
Exam angle
- Dormancy period: 24-36 months.
- Slogan: Your Money, Your Right.