What Happens to Dormant Bank Accounts?

A bank account becomes 'inoperative' or 'dormant' when there are no customer-initiated transactions for a period of time — typically two years. After ten years of inactivity, the balance may be transferred to the RBI's Depositor Education and Awareness (DEA) Fund. These accounts can still be claimed, but the process is more involved.

How Families Discover Them

Dormant accounts often come to light through old passbooks, bank statements, or correspondence found among the deceased's papers. They may also be discovered through the deceased's income tax returns, which would show interest income from accounts the family was not aware of. The RBI maintains a portal (UDGAM) where families can search for unclaimed deposits across multiple banks.

The Importance of Old Passbooks and Statements

Old passbooks and bank statements are among the most valuable documents a family can find. They identify accounts that may have been forgotten, show the last known balance, and provide the branch details needed to initiate a claim. Families should look carefully through the deceased's papers before assuming all accounts have been identified.

Nomination

Where a dormant account has a valid nominee, the claim process is similar to that for an active account — the nominee submits the death certificate, identity documents, and a claim form. Where there is no nominee, succession documentation is required.

Unclaimed Balances and the DEA Fund

Balances transferred to the RBI's DEA Fund can still be claimed from the bank — the bank remains responsible for processing the claim even after the transfer. The UDGAM portal (udgam.rbi.org.in) allows families to search for unclaimed deposits across participating banks using the deceased's name and other details.

Institutional Follow-Up

Dealing with dormant accounts often requires persistence. Branches may not be familiar with the process, or may refer the family to a central processing unit. Keeping a record of all communications — dates, names, reference numbers — is important.