UDGAM Portal Expanded to Trace Unclaimed Bank Deposits

Why in the News ?

The Reserve Bank of India informed the Supreme Court that 30 banks have been integrated with the UDGAM portal, enabling legal heirs to identify unclaimed deposits of deceased account holders and improving transparency in dormant financial assets management.

RBI’s UDGAM Portal and Supreme Court Proceedings:

●  The Reserve Bank of India informed the Supreme Court of India about the expansion of the UDGAM portal.

●  UDGAM stands for Unclaimed Deposits – Gateway to Access InforMation.

●  The portal helps individuals and legal heirs trace unclaimed or dormant bank deposits.

●  A three-judge Bench headed by Vikram Nath was hearing a PIL on unclaimed financial assets.

●  The PIL was filed by journalist Sucheta Dalal.

●  RBI stated that around 20 lakh users have conducted nearly 44 lakh searches on the portal.

●  Thirty integrated banks account for nearly 90% of funds held in the Depositors’ Education and Awareness Fund (DEAF).

●  The Court also sought responses from the Centre and Securities and Exchange Board of India regarding unclaimed assets.

Purpose and Challenges in Tracing Unclaimed Assets

●  The UDGAM portal is designed to help identify and locate inactive or unclaimed deposits.

●  It does not directly settle claims but guides users to approach respective banks.

●  The initiative aims to assist legal heirs of deceased account holders.

●  Dormant accounts and unclaimed funds often remain inaccessible due to lack of awareness or documentation.

●  Petitioners pointed out that post office deposits, provident funds, and insurance schemes are still outside the portal’s scope.

●  This creates difficulties for families trying to recover assets spread across institutions.

●  The case highlights the need for a comprehensive centralised financial asset database.

●  Improved digital integration can strengthen financial inclusion and consumer protection.

About Unclaimed Deposits & Banking Provisions: ●  Unclaimed Deposits: ○   Bank accounts with no transactions for a specified period become inoperative or dormant. ●  Reserve Bank of India created the Depositors’ Education and Awareness Fund (DEAF) in 2014. ●  Banks transfer unclaimed deposits to DEAF after prolonged inactivity .●  UDGAM Portal: ○   Centralised online platform launched by RBI. ○   Helps users search for unclaimed deposits across banks. ●  Financial Regulators Involved: ○   RBI → Banking sector ○   Securities and Exchange Board of India → Securities market ●  Importance: ○   Promotes financial transparency, digital governance, and depositor awareness.