RBI Planning to Give Big Relief to Customers Facing Issues in Activating Inoperative Accounts or Claiming Unclaimed Deposits:

RBI Planning to Give Big Relief to Customers Facing Issues in Activating Inoperative Accounts or Claiming Unclaimed Deposits On May 23, 2025, the Reserve Bank of India (RBI) suggested introducing some significant amendments for bank customers who are facing problems in retrieving their inactive bank accounts. These amendments are being introduced for individuals retrieving their inactive accounts or unclaimed deposits with the bank. Initially, the rule is in draft stage and the RBI is looking for the feedbacks of public. If you want to submit feedback regarding this, then you have time till June 6, 2025. This rule is associated with how a customer can get access to their inactive bank accounts or unclaimed deposits with the bank. RBI has recommoded all banks to offer their customers a way to update Know Your Customer (KYC) details at each branch, as well as the main branch and active video KYC, as requested by customers. Once the KYC process is complete, the customer can use the inactive account or claim the money again. Below are listed the essential details regarding the new suggested RBI rule regarding the inoperative accounts/ unclaimed deposits in a bank:

Inoperative Bank Accounts or Claiming Unclaimed Deposits: What RBI suggest?

A notification was released by the RBI on May 23, 2025, stating the following: All banks are asked to introduce the facility of revising KYC details in them for activing inoperative accounts or unclaimed deposits at all branches, non-home branched as well and also via Video-Customer Identification Process (V-CIP) method, if asked by the customer. Banks must follow the rules for Video Customer Identification Process (V-CIP) as given in the RBI’s KYC guidelines from February 25, 2016, and any updates made to it over time. As mentioned in paragraph 38(a)(iia) of the above Master Direction, an authorised business correspondent of the bank may be used for activating inoperative bank accounts.

Inoperative Bank Accounts or Claiming Unclaimed Deposits: Consequences When Not Accessed

What are the consequences if you don't retrieve your inactive bank account or don't claim unclaimed funds? If you consistently don't activate your inactive account again or claim unclaimed funds for ten or more than then years, then your funds will be transferred to the RBI’s Depositor Education and Awareness (DEA) fund. Same like in when shares stay unclaimed for seven years or more, they are transferred to the Investor Education and Protection Funds (IEPF), unclaimed money in bank accounts is moved to the Depositor Education and Awareness (DEA) Fund. The official notification released by the RBI states, "As per instructions issued vide circular DOR.SOG(LEG).REC/64/09.08.024/2023-24 dated January 1, 2024 (hereinafter called the extant instructions), the credit balance in any deposit account maintained with banks, which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, as mentioned in paragraph 3(iii) of the "Depositor Education and Awareness" (DEA) Fund Scheme, 2014, are required to be transferred by banks to DEA Fund maintained by the Reserve Bank of India."

Inoperative Bank Accounts or Claiming Unclaimed Deposits: How can Comments be Shared?

How can comments about the new suggested amendment in unclaimed deposits, inoperative bank accounts, be shared? On May 23, 2025, the Reserve Bank of India (RBI) stated in a press release, RBI has released a drat cricular regarding the Inoperative Accounts/Unclaimed Deposits in Banks – Revised Instructions (Amendment) 2025, which revised the above mentioned guildelines. Public/ stakeholders are allowed to send comments on the draft circular till June 06, 2025. Feedback is acceptable by using the link given under the ‘Connect 2 Regulate’ Section at the official website of the RBI, or can also be submitted at the following:

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