Context

Recently, the Reserve Bank of India launched the UDGAM Portal for unclaimed deposits in India.

RBI UDGAM Portal

• UDGAM refers to the ‘Unclaimed Deposits-Gateway to Access Information’.
• Launched by: RBI
• Purpose: It facilitates the registered users 
  • To search unclaimed deposits/accounts across multiple banks at one place in a centralized manner. 
  • To provide information on the claim/settlement process of each bank (which will be available in the search result).
• Banks Covered: Currently, 30 banks representing 90% of unclaimed deposits  (in value terms) in Depositor Education and Awareness (DEA) Fund of RBI in India are part of UDGAM.
• A unique Unclaimed Deposit reference number (UDRN) is assigned to each unclaimed account. 
  • This protects  privacy and prevents identification of the bank branch or account holder by any third party
  • Enables the bank branches to seamlessly settle claims received from the customers/depositors, who have made successful searches in the UDGAM portal. 
• Inputs are required to search unclaimed deposits:  A user is required to register on the portal by providing his/her name and mobile number. 
• It provides information related to both the Individual & Non Individuals category of Unclaimed Deposits.

About Unclaimed Deposits

• According to RBI – Balances in savings / current accounts which are not operated for 10 years, or term deposits not claimed within 10 years from date of maturity are classified as “Unclaimed Deposits”. 
• These amounts are transferred by banks to the “Depositor Education and Awareness” (DEA) Fund maintained by the Reserve Bank of India. The depositors are, however, still entitled to claim the deposits at a later date from the banks where such deposits were held along with interest, as applicable. 

Reason Behind the increase of Unclaimed Deposits:

• Due to non-closure of savings / current accounts which depositors do not intend to operate anymore 
• Due to not submitting redemption claims with banks for matured fixed deposits. 
• Accounts belonging to deceased depositors, where the nominees/ legal heirs do not come forward to make a claim on the banks concerned. 

News Source: BS