RBI's Big Move: Unclaimed Deposits Plummet Rs 760 Cr! Are Your Lost Funds Finally Being Found?

The Reserve Bank of India (RBI) is making significant strides in tackling unclaimed deposits and improving customer grievance redressal. Recent initiatives have led to a notable reduction in dormant bank accounts, while a new campaign aims to clear a backlog of customer complaints.

Efforts to Recover Unclaimed Deposits

• RBI Deputy Governor Shirish Chandra Murmu highlighted a substantial Rs 760 crore decrease in unclaimed deposits during October.
• This success is attributed to a concerted government campaign and incentives provided to banks by the RBI.
• On average, monthly reductions in unclaimed deposits were previously around Rs 100-Rs 150 crore.
• The RBI anticipates this rate of recovery to accelerate further due to ongoing efforts from both the government and the central bank.

The UDGAM Portal Initiative

• To aid the public, the RBI launched the centralised web portal UDGAM (Unclaimed Deposits - Gateway to Access Information).
• As of July 1, 2025, the portal had 8,59,683 registered users.
• UDGAM allows registered users to search for unclaimed deposits across multiple banks in one centralized location, making it easier for individuals to reclaim their assets.
• Improvements are planned to make the portal more user-friendly.

Addressing Ombudsman Grievances

• RBI Governor Sanjay Malhotra announced a dedicated two-month campaign commencing January 1, 2026, to resolve all customer grievances pending with the RBI Ombudsman for over a month.
• This initiative comes as the number of grievances and their pendency with the RBI Ombudsman has increased.
• The Governor urged all regulated entities to prioritize customer service and reduce complaint volumes.
• In FY25, pending complaints at the Centralised Receipt and Processing Centre (CRPC) rose to 16,128, up from 9,058 in FY24.
• Total complaints received by the RBI increased by 13.55 per cent to 1.33 million in FY25.

Broader Customer Service Focus

• The RBI has been implementing several measures to enhance customer service, including campaigns like "Re-KYC," financial inclusion, and "Aapki Poonji, Aapka Adhikar."
• The central bank has also reviewed its Citizens Charter and made applications for its services available online.
• Over 99.8 per cent of applications are disposed of within stipulated timelines, according to monthly reports.

Impact

• These initiatives are expected to improve customer confidence in the banking system, potentially leading to better engagement and reduced operational burdens for banks dealing with unclaimed funds and complaints. The successful resolution of grievances could also bolster the reputation of financial regulators.
• Impact Rating: 6/10

Difficult Terms Explained

• Unclaimed Deposits: Funds held by banks on behalf of customers who have not transacted or claimed them for a specified period (typically 10 years).
• RBI Ombudsman: An independent authority set up by the Reserve Bank of India to resolve customer complaints against banks and other financial institutions.
• UDGAM Portal: A web portal developed by the RBI to help customers find information about unclaimed deposits held in various banks.
• Regulated Entities (REs): Financial institutions (like banks, NBFCs) that are supervised and regulated by the RBI.
• Monetary Policy Committee (MPC): The committee within the RBI responsible for setting the benchmark interest rate (repo rate) and managing inflation.
• CRPC: Centralised Receipt and Processing Centre, a unit that handles the initial processing of complaints received by the RBI Ombudsman.