Unclaimed deposits in banks surged during the pandemic, according to recent data released by the Reserve Bank of India (RBI). As of December 2022, unclaimed balances across various accounts, including current, savings, and fixed deposits (FDs), reached Rs 39,900 crore, marking a substantial increase from Rs 18,379 crore recorded in December 2019.
The RBI’s data reveals that both public and private sector banks are grappling with this issue. By March 2023, unclaimed monies held solely by these banks amounted to Rs 42,270 crore, despite concerted efforts through technological initiatives and public awareness campaigns.
Public sector banks held the majority share of unclaimed deposits at Rs 33,303 crore, representing 83% of the total unclaimed funds as of December 2022. Notably, the State Bank of India, the largest public sector lender, holds a staggering Rs 8,069 crore across 2.16 crore unclaimed accounts. Similarly, Punjab National Bank has seen its unclaimed deposits surge almost fivefold from 2019, reaching Rs 5,298 crore.
Private banks
Among private banks, ICICI Bank holds 31.8 lakh accounts amounting to Rs 1,074 crore in unclaimed deposits, while HDFC Bank’s unclaimed deposits have doubled since 2019, reaching ₹447 crore. Even foreign banks operating in India have witnessed a significant uptick, with unclaimed deposits rising from Rs 50 lakh in 2019 to Rs 94 crore in 2022, following its merger with Lakshmi Vilas Bank.
The surge in unclaimed deposits is attributed to various factors, including customers failing to close inactive accounts or losing track of accounts during relocations. Additionally, the pandemic has exacerbated the situation, with an increase in unclaimed balances from the accounts of deceased customers, especially in cases where no nomination was made. The cumbersome process of claiming these deposits, often requiring physical visits to bank branches and extensive documentation for legal heirs, further contributes to the accumulation of unclaimed funds.
