Every year, billions of rupees sit idle in banks as unclaimed deposits—often because the account holder passed away or simply forgot about a fixed deposit made years ago. In India, these unclaimed funds don’t vanish; instead, they are transferred to a special government-controlled fund called the Depositor Education and Awareness Fund (DEAF).
But what does that really mean for you? Whether you’re worried about your own funds going unclaimed, or you think your deceased relative may have left behind money you didn’t know about—this guide will walk you through everything you need to know.
Table of Contents
What Is an Unclaimed Bank Deposit?
An unclaimed deposit is any bank account (savings, current, fixed deposit, or recurring deposit) that has had no activity or contact from the depositor for 10 years or more. In such cases, banks are required by the Reserve Bank of India (RBI) to classify these as unclaimed.
These include:
Savings or current accounts with no activity
Fixed deposits that were never claimed at maturity
Unused bank balances after the death of the account holder
Funds that were forgotten or overlooked
What Happens to Unclaimed Deposits in India?
Once a deposit remains unclaimed for 10 years, the bank is obligated to transfer it to the Depositor Education and Awareness Fund (DEAF), managed by the RBI.
But don’t worry—this doesn’t mean the money is lost forever.
The DEAF fund is like a holding area, and the rightful owner (or their legal heirs) can still claim the money at any time through the original bank.
Why Are Funds Transferred to DEAF?
The idea is to safeguard dormant money, prevent misuse, and raise awareness about financial literacy. The fund is also used to educate the public about banking practices and financial planning.
How to Check for Unclaimed Bank Deposits
If you think you or a family member might have forgotten money lying in a bank, here’s how to find out:
Step 1: Use Bank Portals
Major banks like SBI, ICICI, HDFC, Axis Bank, etc., have dedicated web pages to check unclaimed deposits. Just visit the bank’s website and look for:
👉 “Unclaimed Deposits” or
👉 “Inoperative Account Search”
You’ll usually need to input:
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Full name
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Last known address
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PAN (if available)
Each bank maintains its own list, so if your relative had accounts in multiple banks, you need to check each one individually.
Step 2: RBI’s DEAF Search Tool (Upcoming)
While RBI currently does not have a central online tool, it has announced plans to launch a centralised portal where you can search across all banks. This will make it much easier in the future.
How Can Legal Heirs or Nominees Claim the Money?
If the original account holder has passed away, their nominee or legal heir can claim the money, even if it’s been transferred to the DEAF fund.
Here’s what the claiming process looks like:
1. Gather Required Documents
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Death certificate of the account holder
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Proof of relationship with the account holder
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Identity and address proof of claimant
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Copy of the passbook or account details (if available)
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Will or succession certificate (if no nominee is registered)
2. Visit the Bank Branch
You must visit the bank where the account was held. Submit a formal written application along with the above documents.
3. Verification and Disbursal
The bank will verify your claim and, if everything checks out, will refund the money even if it’s in DEAF.
📝 Note: The process may take a few weeks depending on the bank and the complexity of the case.
How to Avoid Your Funds Going Unclaimed
It’s surprisingly easy for money to go unclaimed—especially when someone opens a fixed deposit and forgets about it or doesn’t inform their family.
To ensure your hard-earned money never gets lost:
1. Keep Accounts Active
Make sure there is some transaction (even a small deposit or withdrawal) every year. This resets the clock and keeps the account “active”.
2. Inform Family and Nominate Heirs
Always add a nominee to your accounts and investments. Let your spouse or children know about the accounts you hold.
3. Create a Financial Record File
Maintain a physical or digital record of all your bank accounts, fixed deposits, insurance, and mutual fund investments. This should be accessible to trusted family members.
4. Use a Personal Finance App or Spreadsheet
Track your financial accounts in one place. This can remind you about renewal dates and help your family track your investments if something happens to you.
5. Close Inactive Accounts
If you’ve stopped using a bank account, it’s better to close it rather than let it become dormant.
Interesting Facts about Unclaimed Deposits in India
As of 2023, over ₹35,000 crore lies unclaimed in Indian banks.
RBI received over ₹4,000 crore in just one year (2022–23) as part of the DEAF fund.
The government has plans to create a central database for easier claims.
FAQs: Unclaimed Bank Deposits
Q1: Can I claim unclaimed money after 10 years?
Yes! Even if your money is moved to DEAF, you can still claim it by approaching the original bank with the required documents.
Q2: Is it safe to claim an account after the holder’s death?
Yes, but you must provide valid proof like a death certificate, identity proof, and in some cases, a legal succession certificate.
Q3: Does money in DEAF earn interest?
No, once transferred to DEAF, the money does not earn interest. That’s why it’s best to keep your accounts active.
Article Source
RBI FAQs on DEA Fund Scheme – rbi.org.in
UDGAM Portal for Unclaimed Deposits – rbi.org.in
Economic Times article on DEA Fund claims – economictimes.com
Business Standard article on refund from DEA Fund – business-standard.com
Outlook Money guide on UDGAM portal – outlookmoney.com
