Scale of unclaimed deposits in Indian banks
As of 2024, unclaimed deposits sitting in Indian banks amount to ₹62,314 crore. These are funds in accounts that have not been operated for a long period, where the account holders or nominees have not claimed the balances. The total has risen noticeably since 2021, reflecting a growing stock of dormant or forgotten money across the banking system.
Which banks hold the most unclaimed money
Public sector banks hold the lion’s share of these deposits. Leading the pack is the country’s largest lender, with ₹16,968.41 crore in unclaimed deposits. Other public sector banks together account for a substantial portion of the remaining amount, while private banks and small finance banks hold smaller but still meaningful sums.
Why unclaimed deposits have increased
- Account dormancy: Customers move, change jobs, or forget small accounts, leaving balances untouched for years.
- Incomplete KYC or documentation: Accounts without up‑to‑date identity details may become inactive and harder to reconcile.
- Nominee or beneficiary gaps: In cases of death, if nominees are not registered or aware, deposits can remain unclaimed.
- Bank mergers and system changes: Consolidation and legacy systems sometimes make it harder to track small, older accounts.
- Low-value dormant accounts: Small balances that are not actively monitored tend to accumulate over time.
Government campaign to reclaim dormant funds
To address the growing stock of unclaimed deposits, the government has launched a campaign to reunite this money with its rightful owners or their heirs. The drive aims to identify dormant accounts, reach out to potential claimants, and simplify the process for reclaiming funds.
Key features of such campaigns typically include awareness drives by banks and regulators, improved outreach to customers, and streamlined procedures for submitting claims. The objective is to reduce the corpus of unclaimed deposits while protecting depositors’ rights.
How individuals can check and claim unclaimed deposits
If you suspect you or a family member might have money in a dormant account, here are practical steps to follow:
- Contact the bank: Visit the branch where the account was opened or call the bank’s customer service.
- Check account status online: Many banks provide facilities to search for dormant or inactive accounts using name and KYC details.
- Verify identity and documents: Be ready to submit proof of identity, proof of address, and relationship documents if claiming on behalf of someone else.
- Submit a claim form: Banks generally require a prescribed form for reactivation or withdrawal of dormant account balances.
- Follow up: Keep records of communications and transaction references until the claim is settled.
Typical documents banks ask for include government ID, proof of address, account details or old passbooks/statements, and in case of deceased accountholders, a death certificate and succession or probate papers.
Implications for customers and the banking system
For customers, unclaimed deposits represent recoverable assets. Reclaiming them can improve personal cash flow and close legacy financial gaps. For families, it can mean recovering pensions, small savings, or forgotten balances that matter in aggregate.
For banks and regulators, large pools of unclaimed money raise governance and customer-service considerations. Clearing dormant accounts helps improve data accuracy, reduces reconciliation costs, and strengthens trust in the financial system.
What to remember
- The total of ₹62,314 crore shows how much recoverable money is currently parked in banks as unclaimed deposits.
- Public sector banks hold most of this, with one major bank alone accounting for ₹16,968.41 crore.
- The government’s campaign seeks to reconnect these funds with rightful owners and cut down the volume of dormant balances.
If you haven’t reviewed your old accounts recently, now is a good time. A quick check with your bank could uncover funds you didn’t know were waiting for you.