The Tribune Special: Ten years of inaction costs city depositors dear

As many as 573 bank account holders in Chandigarh have lost access to nearly Rs 12 crore after their deposits remained unclaimed or accounts stayed inactive for the mandatory period, forcing banks to transfer the money to the Reserve Bank of India (RBI) under statutory rules.

The data was shared by SK Singhal, Lead District Manager (LDM), Chandigarh, who said the transfer was made in line with RBI guidelines that mandated shifting unclaimed deposits to the Depositor Education and Awareness Fund (DEAF) once an account remained inoperative for 10 years or the deposited amount was not claimed by the due date.

According to the progress report on unclaimed bank deposits for the period from October 1 to December 31, 2025, a copy of which is with The Tribune, the Rs 11.95 crore transferred to the RBI pertains to accounts spread across several public and private sector banks operating in the city. Punjab National Bank accounted for the largest share, with 107 accounts involving Rs 8.89 crore, followed by the State Bank of India, which transferred Rs 2.22 crore from 258 accounts. Smaller amounts were transferred by other banks, reflecting widespread lack of awareness among depositors about account operations and timely withdrawals.

Singhal said deposits were also moved to the RBI by the Central Bank of India (16 accounts, Rs 41 lakh), Indian Bank (24 accounts, Rs 14 lakh), Punjab & Sind Bank (18 accounts, Rs 8 lakh), Bank of India (31 accounts, Rs 7 lakh), HDFC Bank (12 accounts, Rs 5 lakh), Union Bank of India (77 accounts, Rs 3 lakh), Canara Bank (9 accounts, Rs 2 lakh), Bank of Maharashtra (16 accounts, Rs 2 lakh) and Indian Overseas Bank (5 accounts, Rs 40,000). Several other banks reported nil transfers during the period.

He said many account holders or their families were often unaware that accounts turn inactive when transactions stopped or deposits were not claimed, eventually leading to the transfer of funds to the RBI after a decade. “The money is not lost forever and can be claimed by the rightful owner, nominee or legal heir, but the process becomes longer if KYC or nomination details are incomplete,” Singhal said.

The Chandigarh data comes close on the heels of a much larger statewide picture in Punjab, where 83.32 lakh inactive bank accounts involving Rs 3,197 crore were transferred to the RBI, as reported earlier by the State Level Bankers’ Committee, Punjab. That disclosure triggered a renewed push for depositor awareness across the region.

Both Chandigarh and Punjab are part of the Government of India’s ‘Your Money – Your Right’ campaign, a three-month public awareness drive conducted from October 1 to December 31, 2025, was aimed at helping depositors trace and reclaim unclaimed bank deposits, as well as unpaid mutual fund and insurance proceeds.

Singhal urged residents to proactively check for dormant or unclaimed deposits through the RBI’s Udgam Portal or by visiting their bank branches. He said special camps were also being held to facilitate re-KYC, nomination updates and claim filings, stressing that timely action can prevent deposits from slipping into long-term dormancy.