Reserve Bank of India Launches UDGAM, a Centralised Web Portal for Unclaimed Deposits

RBI Unveils 'UDGAM': An Integrated Online Portal for Unclaimed Deposits

The Reserve Bank of India (RBI) has taken a significant step towards enhancing customer convenience and safeguarding depositors' interests with the launch of the 'Unclaimed Deposits - Gateway to Access inforMation' (UDGAM) web portal.

This pioneering initiative allows individuals to effortlessly track and reclaim their unclaimed deposits held across multiple financial institutions, all in one unified platform.

Streamlining the Reclamation Process:

In its relentless pursuit of customer-centric solutions, RBI, in collaboration with Reserve Bank Information Technology Pvt Ltd (ReBIT), Indian Financial Technology & Allied Services (IFTAS), and other partnering institutions, has unveiled the UDGAM web service.

Designed to simplify the process of locating and claiming unutilized deposits, this initiative empowers customers to not only identify their dormant accounts but also facilitates the revival of these accounts within their respective banks.

Participating Banks on UDGAM:

Currently, the UDGAM portal features unclaimed deposit information from seven prominent banks, including State Bank of India, Punjab National Bank, Central Bank of India, Dhanlaxmi Bank Ltd, South Indian Bank Ltd, DBS Bank India Ltd, and Citibank.

The integrated platform allows account holders to access information pertaining to their unclaimed funds from these participating banks, promoting transparency and accessibility.

Expanding Access and Services:

Acknowledging the need for comprehensive coverage, the RBI plans to incorporate data from additional banks into the UDGAM portal by October 15, 2023. This expansion will enable a broader spectrum of customers to benefit from the portal's services, streamlining the process of identifying and claiming their dormant deposits.

RBI's Commitment to Depositors:

The central bank's commitment to safeguarding depositors' interests is exemplified through initiatives like UDGAM. By preventing newer deposits from going unclaimed and ensuring the rightful owners or beneficiaries receive their dormant funds through proper procedures, the RBI reaffirms its dedication to maintaining the integrity of the banking ecosystem.

Setting the Timeline:

In line with its proactive approach, the RBI's Deputy Governor, Mr. M Rajeshwar Rao, had announced in April that the portal for unclaimed deposits retrieval would be operational within a span of 3 to 4 months. As promised, the UDGAM web portal has materialized, ushering in a new era of customer-centric banking.

Mitigating Unclaimed Deposits:

Unclaimed deposits that remain dormant in banks for a period of ten years are subsequently transferred to the RBI's Depositor Education and Awareness (DEA) fund. As of the latest available data, public sector banks (PSBs) had contributed a staggering US$ 4.21 billion (Rs. 35,012 crore) worth of unclaimed deposits, associated with approximately 102.4 million dormant accounts by the end of February 2023.

Some relevant and latest facts about the RBI's UDGAM portal for unclaimed deposits:

• The portal was launched on August 17, 2023.

• It is currently available for seven banks: State Bank of India, Punjab National Bank, Central Bank of India, Dhanlaxmi Bank Ltd, South Indian Bank Ltd, DBS Bank India Ltd, and Citibank N A.

• The search function for other banks will be rolled out by October 15, 2023.

• The RBI said that it is taking several steps to protect depositors' interests, including ensuring that newer deposits do not go unclaimed and that current unclaimed deposits are returned to their rightful owners.

• In April 2023, the RBI announced that it would be launching a centralised web portal for unclaimed deposits.

• The total amount of unclaimed deposits in India is estimated to be around ₹35,000 crore (US$4.21 billion).

• Unclaimed deposits are those that have not been operated for a period of ten years or more.

• After ten years, unclaimed deposits are transferred to the RBI's Depositor Education and Awareness (DEA) fund.

Here are some additional facts that you may find relevant:

• The UDGAM portal is a significant step towards helping people track down their unclaimed deposits.

• The portal is easy to use and provides clear instructions on how to search for unclaimed deposits.

• The portal is a secure and confidential way to search for unclaimed deposits.

• The RBI is committed to protecting depositors' interests and ensuring that unclaimed deposits are returned to their rightful owners.

Conclusion:

The UDGAM web portal marks a significant stride in RBI's efforts to empower customers and streamline banking procedures. By centralizing information about unclaimed deposits from various banks, RBI continues to reinforce its dedication to customer welfare and the responsible management of financial resources. This initiative not only benefits individuals seeking to reclaim their funds but also strengthens the broader financial ecosystem.