Why Is Bank of India Pushing a Drive for Unclaimed Deposits Settlement?
About the Initiative:
Bank of India has launched a special drive campaign from 1 October 2025 to 31 December 2025 across all districts of India to address inoperative (dormant) and unclaimed deposits. The campaign aims to help customers reactivate their accounts, submit claims, and prevent funds from being permanently transferred to the Reserve Bank of India’s Depositor Education and Awareness Fund (DEA-Fund). This initiative highlights both regulatory compliance and customer protection, ensuring that account holders do not lose access to their savings due to prolonged inactivity.
Did you know? If a bank account remains inactive for 10 years, the balance is transferred to the RBI’s Depositor Education and Awareness Fund (DEA-Fund). However, customers can reclaim their money anytime by following the due process.
Understanding Dormant and Unclaimed Accounts
A bank account becomes dormant when no transactions take place for two years. If such inactivity continues for a decade, it is categorized as unclaimed, and the balance gets shifted to the RBI-managed DEA-Fund. While the money is safe, the process of reclaiming requires updated KYC (Know Your Customer) and formal claim submission.
- ✅ Dormant account: No customer activity for 2 years.
- ⚠️ Unclaimed account: Inactive for 10 years, balance moved to RBI’s DEA-Fund.
- 💡 Money can still be reclaimed with proper documents and KYC update.
Steps to Claim Your Money
Bank of India has simplified the process for customers to claim their funds. Customers can either visit their home branch or use digital channels like the official website, SMS, or mobile banking.
| Step | Action Required |
|---|---|
| 1 | Visit your home branch |
| 2 | Submit a formal claim request |
| 3 | Provide updated KYC documents |
| 4 | Use digital modes: Bank website, SMS, Mobile Banking, QR-code |
Why Is the Campaign Important?
The RBI has been increasingly vigilant about unclaimed deposits. With over ₹42,000 crore lying unclaimed across Indian banks as per recent data, the drive ensures that customers get rightful access to their funds. It also encourages account holders to keep their accounts active and updated, preventing regulatory complications in the future.
Key Benefits of the Campaign:
- ✅ Faster settlement of dormant accounts.
- 💡 Customer awareness about financial rights.
- ⚠️ Reduced risk of permanent fund transfers to DEA-Fund.
Investor Viewpoint
From an investor’s perspective, this initiative is not just about reclaiming money, but also about financial discipline. Dormant accounts represent unused capital that could have been invested or saved productively. Regular monitoring of accounts ensures liquidity, better credit history, and reduced compliance hassles.
For traders and market participants, ensuring that bank accounts remain active is essential to avoid interruptions in trading margins, settlement obligations, or fund transfers.
Just like monitoring Nifty and BankNifty levels is critical for trading success, maintaining active banking relationships is vital for financial stability.
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How Customers Can Stay Financially Secure
- 💡 Use accounts regularly to prevent dormancy.
- ✅ Keep KYC information updated at all times.
- ⚠️ Avoid leaving large balances in inactive accounts.
- 📉 Dormant funds reduce liquidity and potential returns.
Investor Takeaway
The Bank of India campaign highlights a critical aspect of personal finance—keeping accounts active and updated. Dormant balances may be safe with the RBI, but accessibility and liquidity remain key for investors. Staying proactive with account management ensures uninterrupted access to funds, compliance with regulations, and overall financial empowerment.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
