Definition of Unclaimed Accounts

• Unclaimed bank accounts are those with no customer-initiated transactions for 10 years.
• These include savings, current, fixed deposits, and other types.
• Accounts become unclaimed if not accessed despite notifications.
• Dormant status transitions to unclaimed after the 10-year period.
• The classification is based on RBI’s guidelines for inactive funds.

Transfer to the Depositor Education and Awareness Fund (DEAF)

• Funds in unclaimed accounts are transferred to the DEAF by banks.
• The DEAF is managed by the Reserve Bank of India.
• Interest continues to accrue on these funds as per RBI directions.
• Banks maintain a record of all such transferred accounts.
• The process ensures funds remain secure and accounted for.

Claim Procedure for Account Holders

• Account holders or legal heirs can approach the bank for a claim.
• Valid identity and account proof must be submitted.
• Legal documents are needed in case of nominee or heir claims.
• Banks verify documents before releasing the funds.
• No fee is charged for claiming unclaimed deposits.

Bank and RBI Notification Measures

• Banks publish lists of unclaimed accounts on their websites.
• Periodic reminders are issued to contact the customer or nominee.
• RBI promotes awareness to help recover unclaimed funds.
• Financial literacy campaigns educate customers on managing old accounts.
• Centralized tools help customers locate forgotten or inactive accounts.

Preventive Measures for Account Holders

• Conducting at least one transaction per year keeps accounts active.
• Linking mobile numbers and emails ensures timely alerts.
• Informing family members about account details prevents future issues.
• Maintaining updated KYC records avoids operational blocks.
• Regular account reviews help track and manage old balances.