Reclaiming Forgotten Wealth! A Guide to Recover Unclaimed FDs and Savings

Unclaimed Deposits: A deposit or account that is inactive for ten years or longer is considered an unclaimed bank deposit, per a regulation from the Reserve Bank of India (RBI). If for two years there is no transaction on an account other than interest being credited or maintenance fees being debited, the account is considered inoperative.

Definition of Unclaimed Bank Deposits

Unclaimed bank deposits in this context refer to money that is still in bank current accounts, savings accounts, fixed deposit accounts, recurring deposit accounts, etc. After the corpus is categorised as an Unclaimed Bank Deposit, it is moved to the Depositor Education and Awareness Fund (DEAF), an RBI-managed fund. Every month, deposits that are unclaimed are moved to DEAF.

Investment Committee and Fund Allocation

By the end of FY 2022–2023, the DEAF had about Rs 62,225 crore. A committee established by the RBI invests the fund's funds in securities issued by the government. Interest is paid on the unclaimed funds at the RBI-specified rate. The money received is used for investor education and awareness initiatives in addition to paying interest on deposits held in DEAF.

Customer Search Process

Understanding how clients can look for an unclaimed deposit is crucial. Each bank is required to post on its website a list of Unclaimed Deposits that includes the names, account numbers, and amounts of the holders. By entering their details, such as name, account number, branch, etc., customers can search the details. Furthermore, the "Unclaimed Deposits Gateway to Access Information" (UDGAM) is a dedicated portal that the RBI has recently launched for the purpose of searching for unclaimed deposits. Depositors can enter basic information like their PAN, account number, address, etc. to search for details of unclaimed deposits.

Claiming Process at the Bank

Banks must display the details of unclaimed bank deposits on their websites in accordance with RBI regulations. Clients can visit the bank to retrieve their unclaimed deposit after viewing its details on the internet. In order to accomplish this, the customer must provide the bank with properly completed claim forms, receipts for deposits, and KYC documents like proof of address and PAN.

The account holder's death certificate and any supporting documentation must be presented by the customer if they are claiming the deposit in their capacity as a legal heir. The bank will release the claimant's money after confirming the claim's authenticity. Following the payment to the customer, the Bank files a claim with the RBI in order to receive a reimbursement from DEAF for the settled claim.

Legal Heir Claim Process

The claim must be made by the depositor's legal heirs if the deposits are held in their name after they have passed away. They must first prove their identity and legal heirship to the bank in order to submit the claim. The bank will request the decedent's death certificate and, if necessary, a legal heir certificate or succession certificate. In order to safeguard itself against any future disputes and in the event that other family members file a counterclaim, the bank may also request an indemnity bond from the legal heirs.

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