An Unclaimed Deposit is money lying in a bank account that has had no customer-initiated transactions for a long period (usually 10 years), and is considered inactive or dormant.
An Unclaimed Deposit refers to funds in savings accounts, current accounts, fixed deposits, or recurring deposits that remain untouched for an extended period. In India, if there are no transactions or customer activity for 10 years, the deposit is classified as unclaimed.
Such funds are transferred by banks to the Depositor Education and Awareness Fund (DEAF) maintained by the Reserve Bank of India. However, the money still belongs to the account holder or their legal heirs and can be claimed anytime by following the proper process.
To claim an unclaimed deposit, the account holder (or nominee/heir) needs to submit identity proof, account details, and relevant documents to the bank. Banks may also require additional verification in case of old or inactive accounts.
Unclaimed deposits usually occur due to reasons like forgotten accounts, migration, death of the account holder, or lack of awareness.
"A person opens a savings account and leaves ₹25,000 in it but does not use the account for over 10 years. The amount becomes an unclaimed deposit and is transferred to the RBI’s DEAF fund, though it can still be claimed later."