Unclaimed deposits in bank savings accounts, FDs: How to get your money back?

What are unclaimed deposits?

Balances in savings or current accounts which have not been operated for 10 years, or fixed deposits not claimed within 10 years from the date of maturity, are classified as ‘Claim Deposits’.

What happens to unclaimed deposits after 10 years?

These amounts are transferred by the banks to the ‘Depositor Education and Awareness’ (DEA) Fund created by the Reserve Bank of India.

What are the reasons for their occurrence?

The primary reason for deposits becoming unclaimed is the death of the depositor/account holder without leaving a nomination. Ankit Garg, Advocate and Founder, Garg Law Chambers (GLC) said that most depositors do not make necessary amendments to appoint nominees in their accounts at the time of account opening or even later. In case of his demise, banks are required to follow legal procedures before handing over the money to the legal heirs.

Other reasons could be very low balance in the account or change of name or shifting of residence to another city or country, he added.

What measures can individuals take to avoid their deposits being classified as unclaimed?

Ankit Garg told about the steps to be taken by the people to avoid the risk unclaimed deposit,

There are several important steps individuals can take to avoid the risk of unclaimed deposits.

1) Total of Nominees

One of the most important steps is to appoint a nominee for their bank accounts or deposits. This ensures that if something happens to the account holder, the nominee can claim the money or property without delay.

2) Share bank account and deposit details with family members

It is also important to share details of bank accounts and deposits with family members, so that they are aware of the accounts and can contact them in case of any mishap.

3) KYC (Know Your Customer) Updation

It is important to regularly update KYC (Know Your Customer) details with the Bank in order to receive regular communication and alerts from the Bank. It helps to stay informed about any changes or updates related to account or deposit.

4) Close all your extra accounts

Another important step is to close any unwanted or extra accounts and maintain only 1-2 accounts for daily life. This eases the management of accounts and reduces the risk of losing track of one’s account.

5) Keeping Fixed Deposit (FD) slip safe

keeping at the end FD (Fixed Deposit) exits Keeping safes is important as they serve as proof of ownership and can be used to claim the money on maturity. By following these steps, individuals can reduce the risk of unclaimed deposits and ensure that their hard earned money is safe and easily accessible.

How to claim unclaimed deposit amount?

As per the rules of Reserve Bank of India, every bank is required to display the details of unclaimed accounts on its website. After checking the details on the website, the customer can visit the bank branch with the duly filled claim form and receipts of deposit, and Know Your Customer (KYC) documents to claim the money.

How can the nominee claim the unclaimed deposit amount?

If you are a nominee, you will need to visit the bank with the deposit receipt, identity proof and a copy of the death certificate of the account holder. After verifying the claim, the bank will release the money.

according to a report in PTI, State Bank of India (SBI) tops the chart of unclaimed deposits worth 8,086 crore after Punjab National Bank 5,340 crore, Canara Bank 4,558 crore and Bank of Baroda 3,904 crores.