The RBI Launches UDGAM – A Website That Allows Users To Search For Unclaimed Funds Across Different Banks
The RBI Launches UDGAM – A Website That Allows Users To Search For Unclaimed Funds Across Different Banks: On Thursday, the governor of the Reserve Bank of India (RBI) announced UDGAM (Unclaimed Deposits – Gateway to Access information), a centralized web application that enables consumers to “search their unclaimed deposits throughout numerous institutions at one place.”
According to an RBI news release, this portal has been created for public use to help and make it simpler for people to search their undeclared deposits across numerous banks in one location.
The construction of a centralized web service for tracking down unclaimed deposits was announced by the RBI as part of the Statement on Developmental and Regulatory Policies dated April 6, 2023. Given the rising trend in the volume of unclaimed deposits, the RBI periodically launches public awareness programs to raise awareness of this issue. Additionally, the RBI has urged the public to locate and contact their particular banks to recover unclaimed deposits through these activities, according to the banking authority.
In order to either make a claim for the sum of the deposit or activate their deposit accounts with their respective banks, users can use the web portal to locate their unclaimed deposits and accounts, according to RBI. Participating banks, Indian Financial Technology & Allied Services (IFTAS), and Reserve Bank Information Technology Pvt Ltd (ReBIT) collaborated to develop the platform.
Users will first have access to data from the seven banks currently represented on the web regarding their unclaimed deposits. The seven financial institutions are the State Bank of India, Central Bank of India, Punjab National Bank, South Indian Bank Ltd, Dhanlaxmi Bank Ltd, Citibank N.A.
and DBS Bank India Ltd.
By October 15, 2023, the search function for other banks would be gradually made available, according to the RBI.
What Exactly Are Unused Or Unclaimed Deposits?
There are many dormant savings and current accounts in India. After 10 years of inactivity, a money in an account is treated as an unclaimed deposit. This also applies to fixed and recurring deposits that are not reclaimed within ten years of maturity.
These unclaimed deposits are sent by banks to the RBI-managed Depositor Education and Awareness Fund.
Although the depositor can visit a bank to reclaim these deposits with interest, choosing which bank to visit and how many banks to visit can make the procedure more difficult.
The RBI launched the UDGAM portal, which enables users to search for unclaimed deposits across banks, because traveling to each bank and filling out the paperwork for each family member can be time-consuming.
India now has unclaimed deposits totaling Rs. 35,000 crore. The RBI’s endeavor should raise awareness of these deposits and make it clear how depositors can submit claims.
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