The Reserve Bank of India (RBI) has taken a significant step towards aiding individuals in reclaiming their forgotten deposits with the launch of UDGAM, a centralized web portal.
This innovative platform aims to simplify the process of locating and claiming unclaimed deposits, streamlining the experience for users across multiple banks.
UDGAM: Path to Reclaimed Finances
RBI’s UDGAM, the newly introduced web portal, seeks to alleviate the challenges associated with locating and claiming unclaimed deposits.
This platform is designed to aggregate information from various banks, providing a unified interface for individuals to trace their dormant accounts and investments effortlessly.
Deciphering Unclaimed Deposits
Unclaimed deposits encompass accounts that have remained inactive for a decade or more.
This includes dormant savings or current accounts as well as Fixed Deposit (FD) accounts that have reached maturity but have not been claimed.
Acknowledging the rise in unclaimed deposits, RBI has proactively initiated public awareness campaigns to educate individuals about this matter.
These efforts aim to empower the public to engage with their respective banks and retrieve their long-forgotten financial assets.
Empowering Users: UDGAM’s Features
The UDGAM portal empowers users by enabling them to discover their dormant accounts, allowing two primary actions:
- Claiming Deposits: Individuals can initiate the process to reclaim the deposited amount that has remained untouched for years.
- Activating Dormant Accounts: Users can opt to reactivate their dormant accounts through the portal.
High-Level Discussions and Implementation
The significance of addressing unclaimed deposits was emphasized during the Financial Stability and Development Council (FSDC) meeting, chaired by Finance Minister Nirmala Sitharaman in May of this year.
The minister highlighted the importance of launching a comprehensive campaign to facilitate the retrieval of unclaimed deposits from banks and financial institutions.
Operational Scope of UDGAM
Presently, UDGAM offers access to unclaimed deposit details from seven prominent banks. The remaining banks will be incorporated into the portal’s search mechanism in a phased manner, with full coverage expected by October 15, 2023.
Notable banks currently featured on the portal include State Bank of India, Punjab National Bank, Central Bank of India, Dhanlaxmi Bank, South Indian Bank, DBS Bank India, and Citibank.
Unclaimed Deposits: A Substantial Pool
A substantial corpus of around Rs 35,000 crore in unclaimed deposits was transferred to RBI by public sector banks (PSBs) by February 2023.
State Bank of India led the chart with unclaimed deposits totaling Rs 8,086 crore, followed by Punjab National Bank with Rs 5,340 crore, Canara Bank with Rs 4,558 crore, and Bank of Baroda with Rs 3,904 crore.
As UDGAM emerges as a beacon of financial clarity, individuals now have a streamlined means to reconnect with their lost financial resources.
This endeavor exemplifies RBI’s commitment to promoting financial awareness and inclusivity among the public.