Banks are required to review these unclaimed deposits monthly, followed by transferring funds from accounts which have been inactive for 10 years to the DEA Fund on the last working day of the next month.
It is commonly seen many times that an old bank account or fixed deposit (FD) remains unused for several years. In some cases, following the death of the account holder, the family remains unaware of the funds, and the money is unused. To mitigate this issue of funds languishing with the banks, the Reserve Bank of India (RBI) has created a system that enables an individual or a family to get this money back within minutes.
In case bank deposits, which remain unused for 10 years or those deposits which have completed maturity for over 10 years, are referred to as unclaimed deposits. These funds are held by the RBI in a special fund known as the Depositor Education and Awareness Fund (DEA).
However, these amounts can be claimed, along with interest, from your bank at any time if the account is interest-bearing.
Which accounts are included in this fund?
- Savings and current account balances
- Fixed and recurring deposit accounts
- Loan or cash credit accounts (balance after adjusting dues)
- Unclaimed instruments such as drafts, pay orders, banker’s cheques, or NEFT transfers
- Unused balances in prepaid cards
- Rupee-equivalent amount of foreign currency deposits
Banks are required to review these unclaimed deposits monthly, followed by transferring funds from accounts which have been inactive for 10 years to the DEA Fund on the last working day of the next month.
If you have an unclaimed deposit in your name, you can claim it directly from your bank.
You just need to follow these three easy steps:
- Visit any branch of your bank.
- Fill a simple form and give KYC documents, including Aadhaar, Voter ID, Passport, or Driving License.
- Following the verification process, the bank will refund your money along with any applicable interest.
