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RBI Incentive Scheme for Inoperative Accounts, Unclaimed Deposits

2 October 20251 min read
BANKING & FINANCERBI Incentive Schemefor InoperativeAccounts, UnclaimedDeposits2 October 2025safalsetu.com

Why in the news

The Reserve Bank of India rolled out a time-bound reward plan for lenders. The aim is to bring dormant accounts back to life and hand over idle money to the people who own it.

Key facts

  • Duration: one year, from October 2025 to September 2026.
  • Reward for banks: 5%-7.5% of the amounts handled, capped at ₹25,000.
  • Two eligible activities: reactivating inoperative accounts and settling unclaimed deposits with genuine claimants.
  • Payout drivers: account age (older accounts may fetch more) and deposit size (bigger sums may earn proportionately more).
ElementDetail
ImplementerReserve Bank of India
PeriodOctober 2025 – September 2026
Incentive5%-7.5% of amount, up to ₹25,000
Linked toAccount age and deposit size

About inoperative accounts

  • A savings or current account with no customer-initiated transaction for 2 years, as per RBI guidelines.
  • The money stays in the account, but it remains inactive until the holder revives it.

Objectives

  • Shrink the pile of dormant accounts in the banking system.
  • Make sure depositors get their rightful money, which builds customer trust.

Exam angle

  • Scheme period: October 2025 to September 2026.
  • Inoperative account test: 2 years without a customer-initiated transaction.
  • Incentive band: 5%-7.5%, ceiling ₹25,000.

Test yourself

1. Under RBI's incentive scheme for inoperative accounts and unclaimed deposits, what is the maximum incentive cap mentioned for banks?

Banks get 5%-7.5% of amounts, up to ₹25,000.

2. For how long does RBI's incentive scheme for reactivating inoperative accounts run?

It runs for one year, October 2025 to September 2026.

3. As per RBI guidelines, an account is called inoperative after no customer-initiated transaction for how long?

The notes state 2 years without customer-initiated transactions.