30 banks integrated with UDGAM portal to help legal heirs trace funds

1. At a Glance

• UDGAM (Unclaimed Deposits – Gateway to Access InforMation) is an RBI-operated centralised web portal that allows individuals—especially legal heirs—to search unclaimed deposits across multiple banks from a single interface. [1]
• 30 banks have been integrated into the portal as of early 2026, covering ~90% of unclaimed funds (by value) held in the Depositor Education and Awareness (DEA) Fund (also written DEAF). [1][4]
• Relevant for GS-III (Indian Economy, Banking, Government Schemes) and GS-II (Government Policies, Regulatory Bodies); also a Prelims staple for schemes and RBI-related facts.
• The DEA Fund corpus from Public Sector Banks alone stood at ₹60,518 crore as of February 28, 2026—making unclaimed deposits a live governance and financial-inclusion issue. [2]

2. Why in the News

• In May 2026, the Supreme Court was hearing a PIL filed by journalist Sucheta Dalal, contending that funds in dormant/inoperative accounts were increasingly being transferred to government-managed pools without adequate public knowledge. [5]
• The petitioner sought a centralised platform to provide information on financial assets of deceased persons; the RBI informed the three-judge Bench (headed by Justice Vikram Nath) that UDGAM already addresses this need. [5]
• RBI counsel stated that as of April 1, 2026, the portal had ~20 lakh registered users and ~44 lakh searches conducted. [5]
• PIB (2026) noted a coordinated push by RBI, IRDAI, and SEBI to intensify measures for reclaiming unclaimed financial assets. [3]

3. Background & Evolution

• Predecessor concept: Earlier, each bank maintained its own list; no centralised search existed. Account holders or legal heirs had to approach each bank individually.
• Enabling statutory provision: Section 26A of the Banking Regulation Act, 1949 — provides for transfer of unclaimed deposits to the DEA Fund. [6]

4. Core Static Facts

Portal Basics

• Full form: Unclaimed Deposits – Gateway to Access InforMation
• Launched by: Reserve Bank of India (RBI)
• Nature: Search-only platform; not a claims settlement mechanism — claims must be raised directly with the respective bank [1][5]
• URL: udgam.rbi.org.in

DEA Fund (DEAF)

• Established: May 24, 2014 under DEA Fund Scheme, 2014 [2]
• Governed by: RBI under Section 26A, Banking Regulation Act, 1949 [6]
• Eligible deposits: Savings/current accounts not operated for 10 years; term deposits not claimed within 10 years from maturity [2]
• Scope: Commercial banks + co-operative banks [5]
• PSB corpus: ₹60,518 crore (as of Feb 28, 2026) [2]

UDGAM Portal — Key Numbers | Parameter | Figure | |-----------|--------| | Banks integrated | 30 | | % of DEAF covered | ~90% (by value) | | Registered users (Apr 1, 2026) | ~20 lakh | | Searches conducted (Apr 1, 2026) | ~44 lakh | | Users (Mar 1, 2026 — RBI FAQ) | 18.86 lakh |

Implementing body: Reserve Bank of India (RBI) — Department of Regulation Parent Act: Banking Regulation Act, 1949 — Section 26A Scheme: Depositor Education and Awareness Fund Scheme, 2014

5. Multi-Dimensional Analysis

Economic

• Unclaimed deposits represent a large idle corpus (₹60,518 cr from PSBs alone); their reunion with rightful heirs boosts household wealth and consumption. [2]
• Funds in DEA are not permanently forfeited — banks can reclaim them plus interest once a valid claim is made; UDGAM reduces friction in this process. [1]
• Reduces systemic information asymmetry between depositors/heirs and banking institutions.

Social / Financial Inclusion

• Primary beneficiaries: legal heirs of deceased account holders, NRIs with forgotten accounts, migrant workers, elderly with multiple accounts. [5]
• Addresses the financial literacy gap: millions unaware of dormant accounts in their name or of deceased relatives.
• Coordinated push (RBI + IRDAI + SEBI) signals a whole-of-government approach to returning unclaimed financial assets across banking, insurance, and securities. [3]

Legal / Constitutional

• PIL filed by Sucheta Dalal (journalist and co-founder of Moneylife Foundation) highlights judicial oversight of regulatory bodies in protecting depositor rights. [5]
• SC Bench (Justice Vikram Nath) hearing underscores Article 21 dimensions — right to property and access to information on one's financial assets.
• Statutory anchor: Section 26A, Banking Regulation Act, 1949; scheme operative since May 24, 2014. [6]

Ethical / Governance

• PIL highlighted concern that funds in dormant accounts were being transferred to government-managed pools without adequate public notice — raising accountability questions. [5]
• UDGAM is a transparency measure: shifts the burden from the depositor (having to approach each bank) to a centralised disclosure architecture.
• Limitation acknowledged by RBI: portal is for search only, not for claim settlement — potential criticism that a full end-to-end digital claims mechanism is still absent.

Administrative

• Integration of 30 banks required standardisation of data formats across diverse bank IT systems — a significant technical coordination challenge.
• Remaining ~10% of DEAF (by value) not yet integrated — gap from smaller banks and co-operative banks. [1][5]
• Inter-Regulatory Working Group (RBI + IRDAI + SEBI) working toward a broader unified portal — signals complex multi-regulator coordination requirements. [3]

6. Recent Developments (Last 12–18 Months)

• Feb 28, 2026: PSB unclaimed amount in DEA Fund = ₹60,518 crore (latest figure). [2]
• April 1, 2026: UDGAM reaches ~20 lakh registered users; ~44 lakh cumulative searches. [5]
• May 6, 2026: RBI informs Supreme Court (PIL by Sucheta Dalal) of UDGAM's operational status; SC bench headed by Justice Vikram Nath. [5]
• 2026: PIB announces RBI, IRDAI and SEBI intensifying coordinated measures to help citizens reclaim unclaimed financial assets — signals move toward an inter-regulatory unified portal. [3]
• March 1, 2026: RBI FAQ update records 18.86 lakh registered users. [1]

7. Prelims Hooks (High-Density Factual Bullets)

1. UDGAM stands for Unclaimed Deposits – Gateway to Access InforMation. [1]
2. UDGAM is operated by the Reserve Bank of India (RBI), not any ministry directly. [1]
3. As of early 2026, 30 banks are integrated into UDGAM, accounting for ~90% of DEAF funds by value. [1]
4. UDGAM is a search portal only — it does not process or settle claims; claimants must contact the bank directly. [1][5]
5. The DEA Fund Scheme, 2014 came into effect on May 24, 2014. [2]
6. Statutory basis: Section 26A of the Banking Regulation Act, 1949 provides for unclaimed deposits to be transferred to the DEA Fund. [6]
7. A deposit is classified as "unclaimed" if a savings/current account is not operated for 10 years or a term deposit is not claimed within 10 years from maturity. [2]
8. DEA Fund corpus from Public Sector Banks = ₹60,518 crore (as of Feb 28, 2026). [2]
9. UDGAM had ~20 lakh registered users and ~44 lakh searches as of April 1, 2026. [5]
10. The PIL before the Supreme Court (May 2026) was filed by journalist Sucheta Dalal. [5]
11. The SC bench hearing the PIL was headed by Justice Vikram Nath. [5]
12. RBI, IRDAI, and SEBI are jointly working on an inter-regulatory unified portal for unclaimed financial assets. [3]
13. The DEA Fund covers unclaimed deposits of both commercial banks and co-operative banks. [5]

8. Mains Relevance

GS Paper mapping:

• GS-III: Indian Economy — Banking Sector, Financial Inclusion, Government Schemes
• GS-II: Governance — Government Policies, Regulatory Bodies (RBI, IRDAI, SEBI), Citizens' Grievance Redressal

Specific syllabus headings:

• Role of regulatory and quasi-judicial bodies
• Inclusive growth and issues arising from it
• Government budgeting and financial sector reforms

Plausible Mains question stems:

1. "The UDGAM portal is a step towards financial inclusion but remains incomplete as a grievance redressal mechanism. Critically examine."
2. "Discuss the regulatory framework governing unclaimed deposits in India. How does the UDGAM portal address the concerns of legal heirs of deceased depositors?"
3. "Examine the role of inter-regulatory coordination between RBI, IRDAI, and SEBI in protecting the interests of citizens with unclaimed financial assets."

9. Related Topics to Study Next

10. Common Errors / Trap Areas

1. DEAF vs. IEPF confusion: DEAF (DEA Fund) is under RBI for unclaimed bank deposits. IEPF is under Ministry of Corporate Affairs for unclaimed dividends/shares. Do not conflate.
2. UDGAM as a claim portal: Aspirants often assume UDGAM allows online claim filing. It is search-only; claims must be filed with the respective bank.
3. Year of DEA Fund: The Fund was established under the DEA Fund Scheme, 2014 (effective May 24, 2014), not 2023 (when UDGAM portal was launched). The portal is newer than the Fund.
4. Coverage gap: 30 banks cover ~90% of DEAF value — but not 100%. Smaller banks and cooperative banks remain partially outside the portal.
5. Acronym traps: "DEAF" and "DEA Fund" are used interchangeably; DEAF = Depositor Education and Awareness Fund (not "Depositors' Education and Awareness Fund" in some official RBI documents — both forms appear). The scheme name is Depositor Education and Awareness Fund Scheme, 2014.