The RBI has suggested that banks must provide a KYC update service at all their branches, including the customer's home branch
Nidhi | May 24, 2025 |
Big Relief Proposed by RBI to Account Holders to Get Access to Inactive Accounts and Unclaimed Funds
The Reserve Bank of India (RBI) has come up with a big update to help the banking customers who are facing issues in reactivating their inactive bank accounts or claiming unclaimed money. This update is not final yet and is at the draft stage. The RBI is asking the public to share their thoughts or suggestions about this rule. If you want to give your opinion, you must do it by June 6, 2025.
This rule change is about how a customer can get access to their inactive bank account or unclaimed money in the account. The RBI has suggested that banks must provide a KYC update service at all their branches, including the customer’s home branch. Banks should also provide video KYC if the customer asks for it. After the KYC process is completed, the customer will be able to access the inactive account or claim the unclaimed money.
Here is what the RBI said in a notification dated May 23, 2025:
RBI has released the draft circular on Inoperative Accounts/ Unclaimed Deposits in Banks- Revised Instructions (Amendment) 2025, which changes the earlier instructions.
You can give your feedback on the draft circular till June 6, 2025, and it can be submitted through the link under the ‘Connect 2 Regulate‘ section available on the RBI’s official website, or you can send it to the following address:
The Chief General Manager
Business Conduct Group
Department of Regulation, Central Office
Reserve Bank of India, 12/13th Floor
Shahid Bhagat Singh Marg
Fort Mumbai- 400 001
If customers do not reactivate their inactive bank account or do not claim their unclaimed fund in the bank account for more than ten years, then such a fund will be transferred to the RBI’s Depositor Education and Awareness (DEA) fund.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
