Banking: Up to four nominees can now be added to bank accounts; this will help reduce unclaimed deposits..

The volume of funds in the country's banks that have remained unclaimed for years is steadily rising. These are referred to as "unclaimed deposits." The government informed Parliament that the total value of these deposits is growing rapidly. Concurrently, both the government and the Reserve Bank are taking various measures to ensure these funds reach their rightful owners.

Rapid Increase in Unclaimed Funds Over One Year
According to information provided by the Ministry of Finance in the Lok Sabha, the total value of unclaimed deposits held in banks stood at approximately ₹60,610 crore as of March 31, 2024. Within a single year, this figure surged to reach approximately ₹74,580 crore by March 31, 2025. This signifies an increase of thousands of crores of rupees recorded in just one year.

What Constitutes an Unclaimed Deposit?
According to the government, if a savings or current account remains dormant for 10 years, or if a fixed deposit remains unclaimed for 10 years after its maturity, it is classified as an "unclaimed deposit." Subsequently, these funds are transferred from the respective banks and deposited into the Reserve Bank's Depositor Education and Awareness Fund.

Public Sector Banks Hold the Largest Share
According to the data, public sector banks account for the largest share of these unclaimed funds. In 2024, their share stood at approximately 74.47%, and in 2025, it remained at around 74.18%. This indicates that a significant portion of the unclaimed funds is held within government-owned banks.

New Measures by the Government and RBI
The Ministry of Finance stated that several initiatives have been launched to facilitate the return of unclaimed deposits to their rightful owners. In September 2025, the RBI issued new guidelines aimed at simplifying the process for settling accounts belonging to deceased account holders. Furthermore, effective October 2025, the RBI introduced an incentive scheme. Under this scheme, if a bank successfully settles an unclaimed deposit, it receives an incentive ranging from 5% to 7.5% of the settled amount. 

Specific Directives Issued to Banks
The government has directed banks to periodically conduct special campaigns to trace the actual owners, nominees, or legal heirs of such accounts. Furthermore, these directives include updating the list of unclaimed accounts on their websites every month, contacting account holders via email, SMS, or postal mail, and providing information to customers every quarter.

Impact of the Awareness Campaign
To raise awareness, the government also conducted a nationwide campaign titled "Aapki Punji, Aapka Adhikar" (Your Capital, Your Right) between October and December 2025. The impact of this initiative has been evident; as of February 28, 2026, unclaimed funds amounting to approximately ₹5,777 crore have been successfully returned to their rightful owners.

Changes to Nomination Rules
To mitigate the issue of unclaimed deposits in the future, amendments have also been introduced to the Banking Rules (Amendment) Act, 2025. Bank account holders are now permitted to designate up to four nominees—instead of just one—thereby reducing the likelihood of funds remaining unclaimed in the future.

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