Massive Rs 72,000 Crore in Unclaimed Bank Deposits Shifted to RBI-Managed Fund
The Indian government has revealed that a staggering sum exceeding Rs 72,000 crore in unclaimed bank deposits, encompassing amounts held by foreign lenders, has been transferred to a fund administered by the Reserve Bank of India (RBI). This disclosure was made in Parliament on Tuesday, highlighting the substantial volume of dormant funds within the banking system.
Minister of State for Finance, Pankaj Chaudhary, provided a written reply in the Rajya Sabha, explaining that deposits in savings or current accounts which remain inactive for ten years, or term deposits that go unclaimed for a decade after maturity, are classified as unclaimed. These funds are subsequently moved to the Depositor Education and Awareness (DEA) Fund, which is managed by the central bank.
Public Sector Banks Dominate Unclaimed Deposits
Data presented to Parliament indicates that public sector banks account for the overwhelming majority of these unclaimed deposits. As of January 28, 2026, state-owned banks held Rs 60,571.02 crore in unclaimed funds. In comparison, private sector banks accounted for Rs 9,607.76 crore, while foreign banks held Rs 2,275.01 crore.
Collectively, the total unclaimed deposits across the entire banking system amounted to Rs 72,454 crore as of that date, according to Minister Chaudhary.
Initiatives to Assist Depositors in Reclaiming Funds
To address the accumulation of unclaimed deposits and prevent new additions, both the government and the RBI have implemented several key measures. One significant step is the introduction of a centralized online platform known as UDGAM (Unclaimed Deposits – Gateway to Access Information). This portal enables individuals to search for unclaimed deposits across multiple banks through a single interface.
Additionally, the minister highlighted that the Banking Laws (Amendment) Act, 2025, includes provisions allowing bank customers to make up to four nominations, either successive or simultaneous. This change is designed to enhance the likelihood of rightful claimants accessing the deposits in the future.
Utilization of the DEA Fund for Financial Literacy
Chaudhary further elaborated that the DEA Fund is utilized to support initiatives aimed at boosting financial awareness among the public. These efforts encompass programs focused on financial literacy for marginalized communities, seminars on secure banking practices, and funding for research and projects related to depositor education.
Additional Parliamentary Updates on Banking and Finance
In response to other queries, the minister provided updates on several financial matters. He stated that loans sanctioned by banks to the National Cooperative Development Corporation (NCDC) from January 19, 2026, for onward lending to cooperative societies, will now qualify as priority sector lending, subject to specific conditions.
Regarding the National Investment and Infrastructure Fund (NIIF), Chaudhary reported that its total corpus reached Rs 33,249 crore as of December 2025, with investments distributed across 24 entities in sectors like infrastructure, renewable energy, healthcare, and manufacturing.
On the topic of unsecured personal loans, he noted that outstanding amounts with scheduled commercial banks increased to Rs 9,53,181 crore as of March 31, 2025. However, the proportion of unsecured retail loans within total retail advances decreased to 25.2% from 28% in March 2023. The RBI continues to implement regulatory measures to mitigate risks and ensure financial stability.
