Why in news?
The Reserve Bank of India informed the Supreme Court that its UDGAM (Unclaimed Deposits – Gateway to Access Information) portal has received more than 44 lakh searches since it went live. The court was hearing a petition seeking a mechanism to inform legal heirs about unclaimed deposits in banks, post offices and insurance companies.
Background
Banks classify a deposit as “unclaimed” when there is no customer‑initiated transaction for 10 years. Funds from such dormant accounts are transferred to the Depositor Education and Awareness Fund, but the money remains the property of the account holder or their nominee. Until recently, locating these deposits was difficult because each bank maintained separate lists. In August 2023 the RBI launched the UDGAM portal to provide a central search facility.
Features of UDGAM
- Multi‑bank search: Registered users can search for unclaimed deposits across multiple banks by entering their name and identity details. The portal returns a list of matches and directs users to the relevant bank for claim processing.
- Secure access: Users must create an account on the portal using a mobile number and email. This prevents misuse of personal information.
- Expansion plans: The RBI told the court that it is exploring integration with post office savings, cooperative banks and insurance accounts. The goal is to provide a single platform for all unclaimed financial assets.
- Public awareness: The matter reached the Supreme Court because a petitioner argued that heirs often remain unaware of deposits left by deceased relatives. Judges noted the need for wider publicity and directed the government to consider a unified database.
Why it matters
According to the RBI, thousands of crores of rupees lie unclaimed in banks. Making this information accessible benefits depositors and reduces the risk of fraud. A central portal also improves financial literacy by reminding people to keep their accounts active and update nominee details.