In a significant move to address the issue of unclaimed deposits in banks, the Reserve Bank of India (RBI) has launched a centralized web portal named UDGAM (Unclaimed Deposits – Gateway to Access information). This initiative, spearheaded by RBI Governor Shaktikanta Das, is aimed at simplifying the process for citizens to search and claim unclaimed deposits across multiple banks.
Background and Development of UDGAM
The inception of UDGAM was announced as part of the RBI’s Statement on Developmental and Regulatory Policies dated April 6, 2023. This decision was driven by the growing amount of unclaimed deposits in banks, which prompted the RBI to conduct public awareness campaigns to encourage individuals to claim their deposits.
Functionality of UDGAM
UDGAM is a user-friendly platform that consolidates information on unclaimed deposits from various banks, enabling users to search for and claim their deposits. Initially, the portal covers seven major banks: State Bank of India, Punjab National Bank, Central Bank of India, Dhanlaxmi Bank, South Indian Bank, DBS Bank India, and Citibank. The RBI has planned to extend the portal’s coverage to include additional banks in a phased manner by October 15, 2023.
Statistics of Unclaimed Deposits
As of February 2023, public sector banks (PSBs) have transferred approximately Rs 35,000 crore in unclaimed deposits to the RBI. These are deposits that were not operated for 10 years or more. Among these, the State Bank of India (SBI) holds the largest amount of unclaimed deposits, totaling Rs 8,086 crore.
Process to Register and Search on UDGAM
To utilize UDGAM, users need to register on the portal by providing basic information such as mobile number, name, and password. After registration, they can log in using their credentials and an OTP sent to their mobile. The portal allows users to search for unclaimed deposits by entering details like the account holder’s name, bank name, and at least one identification criterion such as PAN, Voter ID, Driving License Number, Passport Number, or Date of Birth.
Implications and Future Prospects
This initiative by the RBI is a commendable step towards ensuring depositors’ protection and reducing the volume of unclaimed deposits. By facilitating easier access and claim processes, UDGAM serves as a vital tool in safeguarding the interests of bank customers and enhancing the efficiency of the banking sector.