RBI tells SC: 30 banks linked to UDGAM portal; PIL seeks wider integration, hearing on unified assets search on 19 May

The Reserve Bank of India (RBI) has informed the Supreme Court that 30 banks have been integrated with its Unclaimed Deposits – Gateway to Access Information (UDGAM) portal. The integration enables legal heirs to search for unclaimed deposits of deceased account holders on a single digital platform.

Submission before Supreme Court bench

This submission was made before a bench of Justices Sandeep Mehta, Vikram Nath and Vijay Bishnoi during a public interest litigation (PIL) hearing on 5 May. The PIL, filed by journalist Sucheta Dalal, sought a centralised mechanism to help families track dormant financial assets more efficiently.

UDGAM portal usage

Launched on 17 August 2023, the UDGAM portal has already seen widespread usage, with about 44 lakh searches conducted to date. Users can enter basic details of deceased account holders and search across participating banks to locate unclaimed deposits.

The central bank clarified that the portal is only an information and search facility. Legal heirs must approach the relevant bank or financial institution directly to claim funds after locating the account details.

Concerns over partial integration

The court was told that 30 integrated banks account for a major portion of the unclaimed deposits, which have been transferred to the Depositor Education and Awareness Fund (DEAF), which is responsible for holding dormant deposits from banks.

Advocate Prashant Bhushan, appearing for the petitioner, argues that key financial assets, such as post office deposits, provident funds, insurance policies and securities, remain outside the system, limiting its scope.

The Supreme Court has now sought detailed responses from the Union government and financial regulators, and the matter will be heard on 19 May.

Impact on common people

If key financial assets, such as post office deposits, insurance policies, provident funds and other securities, are integrated effectively, it will unify search systems. Once done, it will:

1. Simplify the search process: One platform will then make it easier to locate multiple unclaimed bank accounts without delays or complications. The claimants will also not be required to visit individual banks for verification and checks.
2. Faster awareness and information sharing for heirs: Legal heirs will be able to identify dormant funds more easily and begin the process of claiming them.
3. Improvement in transparency: The portal is currently helping to reduce the risk of unclaimed money. Further improvements and integrations in this regard will be healthy for the banking system and further boost integrity and transparency, as unclaimed funds will be quickly located and made available to the legal heirs.

According to the RBI, UDGAM helps improve access to and availability of unclaimed bank deposits.