India Simplifies Process to Reclaim ₹78,000 Crore Deposits
In a significant move to make banking more accessible and transparent, Indian banks will soon roll out a standardized process to help account holders and their legal heirs reclaim unclaimed deposits worth over ₹78,000 crore. The initiative introduces uniform application and declaration forms, along with a fixed set of required documents, aimed at streamlining the recovery process across public and private sector banks.
This reform is expected to benefit countless individuals and families who have struggled to access dormant or forgotten funds due to inconsistent procedures and lack of awareness.
Key Requirements for Claim Submission
To initiate a claim, individuals will be required to submit basic personal information such as name, mobile number, and address. Once the application is submitted, the concerned bank branch will verify the details before processing the claim. By creating a uniform set of procedures, banks hope to minimize delays and remove ambiguity from the reclaim process.
The initiative particularly targets cases where account holders are deceased and nominees or legal heirs face procedural hurdles in accessing funds. A simplified, consistent framework will now make it easier for them to assert their rightful claims.
Digital Access and Future Implementation
The plan includes the launch of an online retrieval platform by the financial year 2025–26. This digital facility will enable users to easily identify unclaimed deposits and submit claims online, increasing convenience and reducing manual intervention. The online system will be a centralized tool for depositors, nominees, and legal representatives to trace and retrieve dormant funds.
This initiative is in alignment with the Reserve Bank of India’s recent directive mandating banks to publicly disclose details of unclaimed deposits and inactive accounts, including the names and last known addresses of the account holders. Banks are also required to offer search tools on their websites, enabling easier identification of such accounts by the public.
Through these measures, Indian banks aim to reduce the accumulation of idle funds, ensure rightful ownership, and enhance public trust in the banking system. The simplified framework is not only expected to bring financial closure to countless households but also improve operational efficiency across the banking sector.
