The Depositor Education and Awareness Fund is a fund maintained by the Reserve Bank of India for unclaimed bank deposits and depositor-awareness activities.
It was created under Section 26A of the Banking Regulation Act, 1949, inserted through the Banking Laws (Amendment) Act, 2012. The Depositor Education and Awareness Fund Scheme, 2014 came into effect from 24 May 2014.
What Goes Into the Fund
Banks transfer amounts to the DEAF when they remain unclaimed for 10 years or more.
This includes credit balances in:
- savings bank accounts
- current accounts
- fixed or term deposits
- cumulative or recurring deposits
- other deposit accounts remaining unclaimed for 10 years or more
RBI’s public FAQ states that balances in savings/current accounts not operated for 10 years, or term deposits not claimed within 10 years from maturity, are classified as unclaimed deposits and transferred to the DEA Fund.
Depositor’s Right to Claim
Transfer of money to DEAF does not mean the depositor loses ownership.
The depositor, nominee or legal heir can still claim the amount from the original bank along with applicable interest. The bank verifies the claim and then seeks reimbursement from RBI’s DEAF.
Latest Data
The latest widely reported RBI Annual Report figure shows that unclaimed deposits with banks rose to ₹78,213 crore at the end of March 2024, compared with ₹62,225 crore at the end of March 2023.
More recent government-linked updates show a stronger recovery push. A March 2026 Lok Sabha document notes that RBI introduced an incentive scheme on 30 September 2025, effective from 1 October 2025, offering banks a payout of 5%–7.5% of the unclaimed deposit amount, subject to a cap, for every successfully settled claim.
UDGAM Portal
RBI has launched the UDGAM portal — Unclaimed Deposits Gateway to Access Information — to help people search unclaimed deposits across banks from one place.
It helps depositors, nominees and legal heirs identify dormant or unclaimed deposits and approach the concerned bank for settlement. RBI’s public communication says unclaimed deposits transferred to DEAF can still be claimed later from the bank along with applicable interest.
Purpose of the Fund
The Fund is meant to promote depositor education and depositor awareness.
Its purposes include:
- creating awareness about unclaimed deposits
- educating depositors about banking rights
- improving financial literacy
- supporting activities that protect depositor interests
- helping rightful claimants recover dormant deposits
- encouraging banks to trace depositors, nominees and legal heirs
Why It Matters
DEAF is important because unclaimed deposits often arise due to:
- death of account holders without nominee awareness
- forgotten bank accounts
- migration of depositors
- inactive salary or savings accounts
- incomplete KYC or address changes
- family members being unaware of deposits
- elderly depositors losing track of accounts
The fund protects depositor interest by ensuring that money is not absorbed by banks and remains claimable by rightful owners.
Recent Policy Push
In 2025, authorities launched outreach campaigns such as “Aapki Poonji, Aapka Adhikar” / “Your Wealth, Your Right” to help citizens reclaim unclaimed deposits. District-level reports show banks and local administrations organising claim-settlement camps and awareness drives to trace depositors and legal heirs.
The incentive scheme effective from October 2025 is significant because it gives banks a direct reason to actively trace claimants instead of passively holding unclaimed balances.
Significance
DEAF strengthens depositor protection in the banking system.
It ensures that:
- unclaimed deposits remain traceable
- depositors do not lose their rightful money
- banks cannot permanently retain inactive deposits
- depositor-awareness programmes receive dedicated support
- legal heirs have a route to recover old deposits
- financial inclusion is supported through awareness and claim settlement
It also improves trust in the banking system by recognising that dormant money still belongs to the depositor or rightful claimant.
Concerns
- Many legal heirs do not know that deposits exist.
- Claim settlement can be slow due to documentation and succession issues.
- Awareness remains low in rural and elderly populations.
- Dormant accounts continue to rise despite digital banking.
- Multiple bank accounts make tracking difficult.
- Banks may not proactively trace claimants unless incentivised.
- Data quality and name-matching issues can make searches difficult.
Way Forward
Banks should regularly update nominee details, mobile numbers and addresses of depositors.
The UDGAM portal should be made more user-friendly, multilingual and widely publicised.
Banks should proactively identify dormant accounts before they become unclaimed.
Claim settlement for nominees and legal heirs should be simplified without weakening fraud safeguards.
Financial-literacy campaigns should specifically target elderly depositors, families of deceased depositors and rural households.
Conclusion
The Depositor Education and Awareness Fund is a depositor-protection mechanism created under the Banking Regulation Act. It receives bank deposits that remain unclaimed for 10 years or more, but the rightful depositor, nominee or legal heir can still claim the money.
With unclaimed deposits reaching ₹78,213 crore by March 2024 and RBI’s 2025 incentive scheme for banks to settle claims, DEAF has become an important issue in financial inclusion, consumer protection and banking governance.
