Source: ET
Context:
The UDGAM (Unclaimed Deposits – Gateway to Access iNforMation) portal has emerged as a central tool in India’s financial transparency landscape. In a significant update to the Supreme Court on May 5, 2026, the RBI confirmed that 30 major banks—representing 90% of unclaimed funds—are now live on the platform.
What is the UDGAM Portal?
Launched by the RBI, UDGAM is a centralized web platform designed to help citizens and legal heirs search for unclaimed deposits across multiple banks in one place.
- The Scope: As of April 1, 2026, the portal has seen 20 lakh registered users and 44 lakh searches.
- The “Trace, Not Claim” Rule: The portal is an identification tool. It helps you find where the money is, but the actual claim settlement (submitting death certificates, KYC, etc.) must still be done directly with the specific bank.
What is DEAF Corpus?
When money in a bank account remains untouched for 10 years or more, it is classified as an “unclaimed deposit.”
- Mechanism: These funds are transferred to the Depositor Education and Awareness Fund (DEAF), maintained by the RBI.
- Safety: The money is not “taken” by the government; it is held in this corpus. Depositors or their heirs can claim it back from the bank at any time, even after it has been moved to DEAF. The bank then claims the refund from the RBI.
The Supreme Court Hearing
The recent judicial intervention stems from a PIL filed by journalist Sucheta Dalal, highlighting the difficulties legal heirs face in navigating the bureaucracy of deceased persons’ assets.
Current Limitations & Arguments
- Integration Gaps: While 90% of bank funds are covered, advocate Prashant Bhushan noted that Post Office savings, Provident Funds (EPF), and Insurance policies are not yet part of UDGAM. This creates a fragmented search process for families.
- Judicial Directive: The Supreme Court has given the Centre and SEBI one week to explain how they plan to simplify the return of unclaimed funds across all financial institutions, not just banks.
Key Concepts
Q: When is an account considered “Inoperative”?
A: If there are no customer-induced transactions (like a withdrawal or deposit) in the account for over two years, it becomes inoperative. If it stays that way for 10 years, the balance goes to DEAF.
Q: How do I search on UDGAM?
A: You need to register on the portal using a mobile number and search using the name of the account holder plus at least one valid input like PAN, Aadhaar, or Date of Birth.
Q: Does the money in DEAF earn interest?
A: Yes. When a claim is settled, the RBI pays the principal amount plus interest (at a rate specified by the RBI from time to time) to the depositor through the bank.
Conceptual MCQs
Q1. What is the primary function of the UDGAM portal?
A) To instantly transfer unclaimed funds to the legal heir’s account.
B) To facilitate the identification and tracing of unclaimed deposits across multiple banks.
C) To act as a secondary stock exchange for dormant shares.
D) To provide small loans to depositors who have lost their passbooks.
Q2. Funds are transferred to the Depositor Education and Awareness Fund (DEAF) after how many years of being unclaimed?
A) 2 years
B) 5 years
C) 10 years
D) 20 years
Q3. Which of the following is NOT currently integrated into the UDGAM portal?
A) Public Sector Banks
B) Private Sector Banks
C) Post Office Savings Schemes
D) Co-operative Banks
Answers: Q1: B | Q2: C | Q3: C
Exam Relevance
| Exam | Focus Area |
| UPSC CSE (GS-3) | Economy: Banking regulations, Financial inclusion, and the role of the RBI. |
| RBI Grade B | Banking awareness, DEAF guidelines, and the UDGAM interface. |
| SSC / Banking | Current Affairs: The name of the portal (UDGAM), the DEAF corpus year (2014), and recent court rulings. |
