SBI Unclaimed Deposits Claim: SBI Step-By-Step Guide On How To Claim Unclaimed Deposits

Balances in savings/current accounts that are not operated for 10 years, or term deposits not claimed within 10 years from the date of maturity are classified as "Unclaimed Deposits". These amounts are transferred by banks to the "Depositor Education and Awareness" (DEA) Fund maintained by the Reserve Bank of India. The depositors are, however, still entitled to claim the deposits at a later date from the bank(s) where such deposits were held along with interest, as applicable. However, despite public awareness campaigns undertaken by banks as well as RBI from time to time, the amount of Unclaimed deposits is showing an increasing trend.

The growing volume of Unclaimed Deposits arises mainly due to the non-closure of savings / current accounts which depositors do not intend to operate anymore or due to not submitting redemption claims with banks for matured fixed deposits. There are also cases of accounts belonging to deceased depositors, where the nominees/ legal heirs do not come forward to make a claim on the bank(s) concerned. To help such depositors or the nominees / legal heirs of deceased depositors identify and claim the deposits, banks already host a list of Unclaimed Deposits on their website with some identifiable details. Members of the public are encouraged to identify and approach the bank concerned for claiming such deposits.

A whopping total of Rs 42,272 crore are sitting with banks as unclaimed deposits as of the end of March 2023, and around Rs 2,637.94 crore of unclaimed dividends and units are lying with mutual funds, according to a media report.

What Happens When the Accounts and Deposits are Dubbed as Unclaimed/Inactive?

According to AU Small Finance Bank, the first thing that will happen to the unclaimed fixed deposits and inoperative bank accounts that have seen zero activity for 10 years, is they will be transferred to the bank's head office.
Then, either of the two situations will happen:

• Provided the term deposits are matured and the proceeds are unpaid, the amount left unclaimed with the bank shall attract a rate of interest as applicable to the savings account or the contracted rate of interest on the matured TD, whichever is lower.
• The funds may be transferred to the Deposit Education and Awareness Fund. It mainly comprises inactive term deposits and accounts that have not been operated or claimed for 10 years. Banks are required to transfer balances from these dormant accounts to the Fund in each calendar month.

In either case, it is possible to claim the unclaimed funds. As stated above, the RBI has made it easy for people to get these funds. All banks are required to display the inactive bank account and term deposit details on their websites. The list must contain the names of the account holders and their addresses only.
Besides, Banks are required to clearly state the procedure to claim the funds on their websites. Therefore, you can visit the bank's site and search for the unclaimed accounts/deposits right there.

How to Claim Unclaimed Deposits?

The first thing you need to do is visit the nearest branch of your bank and submit the unclaimed deposits claim form.
There are four possible scenarios where you will be allowed to claim the funds:

• It is for yourself
• You are the nominee
• You are the legal heir
• Other reason

According to the SBI website, the Customer / Survivor / Legal Heir/Authorized Signatories, as the case may be, may lodge a claim for the unclaimed deposit to activate the account.

If you are a SBI customer, to claim your unclaimed funds you may have to visit a branch of SBI with all necessary KYC documents. If you activate and continue operations in the account, the branch will accept the specific request from the customer and reactivate the account by obtaining proper KYC. In case of final claims and closure of an account, the branch will accept specific requests from the customer to process accordingly.

Procedure for Claim:

Individual claim by customer-

Customers may visit the SBI branch with the request letter (in the given format) and submit valid proof of identity, address & latest photograph. On verification of the same, the branch will make the account operative and allow transactions in the account.

Claim by Legal Heir / Nominee

The Legal Heir / Nominee may visit the SBI Branch and submit the required documents. Customers would be required to comply with the claim settlement process of the Bank.

Claim by Non-Individual

The customer may submit the Claim Form on the Company's/ Firm's / Institution's letterhead duly signed by the authorized signatories along with their valid identity and address proofs. The customer may also be required to submit additional documents as required by the Bank.