A staggering sum of money is sitting forgotten in Karnataka’s banks. Officials revealed that around Rs 3,400 crore has remained unclaimed in accounts for over a decade. This information came to light during a recent District Consultative Committee meeting in Mangaluru.
The Reserve Bank of India is now taking action. Arun Kumar, an RBI Assistant General Manager, announced a statewide campaign to help people recover these funds. This special drive operates under the Depositor Education and Awareness Fund, or DEAF.
It began three months ago and will run until December 31. Importantly, depositors can still approach their banks after this deadline passes. The initiative aims to reconnect this massive amount of money with its rightful owners.
Digging into the details reveals a telling pattern. Nearly 80 percent of these unclaimed accounts hold less than Rs 10,000. Many have been inactive for decades, with outdated contact information or incomplete KYC details.
In numerous cases, the original account holders have passed away. This creates a complex challenge for recovery. The campaign’s first step focuses on updating mobile numbers and customer details.
The unclaimed funds aren’t limited to one account type. This money includes deposits from savings accounts, fixed deposits, and current accounts. It represents a wide cross-section of banking customers who have lost touch with their funds.
There is a dedicated portal to help. Customers can check for any unclaimed deposits in their name through the UDGAM online platform. This tool is a key part of simplifying the reclamation process.
The problem is significant even at the district level. In Dakshina Kannada alone, nearly six lakh accounts hold about Rs 140 crore in unclaimed deposits. Kavitha Shetty, the Lead Bank District Chief Manager, provided these local figures.
Some progress is already being made. Under the DEAF scheme, Rs 20 crore has been returned to depositors from 830 accounts so far. This shows the campaign can yield results when people come forward.
However, more awareness is critically needed. Dakshina Kannada MP Capt. Brijesh Chowta called for stronger outreach efforts. He urged banks to proactively inform customers using pamphlets and direct communication.
Chowta also highlighted broader systemic issues. He raised concerns over delays in implementing various government welfare schemes. Better execution of programmes like PMJDY and PMSBY is essential.
The scale of unclaimed deposits points to a larger disconnect. It underscores how easily people can lose track of their financial assets over time. Regular account maintenance is crucial.
For heirs, this situation presents another layer. They must navigate the process of claiming funds from deceased relatives’ accounts. Proper documentation and legal procedures are necessary.
The RBI’s campaign is a timely intervention. It seeks to address a growing pool of dormant capital within the banking system. Reuniting this money with citizens boosts financial inclusion.
Public participation will determine its ultimate success. Account holders and their families must check their status and update their information. Every rupee reclaimed is a small victory.
Financial awareness remains the best long-term solution. Understanding how to manage and track accounts can prevent funds from becoming unclaimed in the future. It’s a lesson in proactive finance.