Introducing a new initiative, the Reserve Bank of India (RBI) governor has revealed UDGAM (Unclaimed Deposits - Gateway to Access Information). This centralized web service has been designed to offer users the convenience of searching for their unclaimed deposits across multiple institutions from a single platform.

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

In the Statement on Developmental and Regulatory Policies dated April 6, 2023, the RBI disclosed its plans to establish a centralized web-based platform aimed at locating unclaimed deposits. “Given the increasing trend in the amount of unclaimed 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 has been encouraging members of the public to identify and approach their respective banks for claiming unclaimed deposits,” the banking regulator said.

According to the RBI, the web portal aims to assist customers in locating their unclaimed deposits and accounts, empowering them to either initiate a claim for the deposit amount or activate their deposit accounts with their respective banks. Participating banks, along with Indian Financial Technology & Allied Services (IFTAS) and Reserve Bank Information Technology Pvt Ltd (ReBIT), have collaborated to establish this platform.

Initially, users will access information regarding their unclaimed deposits from the seven banks currently represented on the portal. These banks include the 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.

The RBI has announced its plan to progressively introduce and make accessible the search functionality for additional banks by October 15, 2023.

In India, numerous savings and current accounts remain inactive. An account becomes classified as an unclaimed deposit if it remains dormant for ten years. The same principle applies to both recurring and fixed deposits that remain unclaimed for ten years after maturity.

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

Although depositors have the option to personally visit a bank and claim these deposits along with accrued interest, the process can become complex when determining which bank(s) to approach, particularly if multiple accounts are involved.

To address the potential hassle of visiting multiple banks and completing paperwork for each family member, the RBI has initiated the UDGAM platform. This platform empowers users to search for unclaimed deposits across various banks.

Presently, the total value of unclaimed deposits in India stands at Rs 35,000 crore. The RBI's UDGAM initiative is anticipated to heighten awareness about these deposits and provide clear guidance on how depositors can assert their claims.

Image source: ABP NEWS