The RBI requests that banks regularly examine unclaimed deposits

 The RBI requests that banks regularly examine unclaimed deposits

The RBI requests that banks regularly examine unclaimed deposits

In August 2023, the RBI introduced the UDGAM platform to monitor all unclaimed deposits.

On January 1, the Reserve Bank of India (RBI) sent out recommendations to banks about unclaimed deposits, requesting periodic reviews.

An unclaimed deposit is a dormant deposit that has not seen any action from the depositor—no withdrawals, cash withdrawals, etc.—for ten years or more.

According to the announcement, banks have also been instructed by RBI to establish a grievance redressal structure to facilitate the prompt settlement of complaints and to take steps to avoid frauds in such accounts or deposits.

According to the release, banks must also track down clients with inactive accounts or unclaimed deposits, as well as their nominees or legal heirs, in order to reactivate accounts, resolve disputes, or close claims and determine the appropriate course of action. Action must be done.

According to the central bank, these guidelines are anticipated to support banks' continuous efforts and endeavors to lower the amount of unclaimed deposits in the banking system and restore such deposits to their legitimate owners or claimants.

According to the press release, all co-ops and commercial banks, including regional rural banks, would be subject to the RBI's directives.

In August 2023, RBI created the UDGAM platform to monitor all unclaimed deposits. It is a single, centralized interface that makes it easier for customers to keep track of all of their unclaimed bank deposits.

Prior to UDGAM, each bank's website had to be checked separately for these deposits.

The '100 Days, 100 Payments' campaign was introduced by the central bank in May 2023, offering banks a 100-day window in which to locate and pay the top 100 unclaimed deposits of each bank in each area of the nation.

"This measure will complement the ongoing efforts as well as initiatives by the Reserve Bank to reduce the volume of disputed deposits in the banking system and return these moneys to their rightful owners/claimants," the central bank said.