RBI Revises Guidelines on Inoperative Accounts & Unclaimed Deposits – June 2025 Update
IPPC GROUP (I.P. Pasricha & Co)
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The Reserve Bank of India (RBI) has issued an amendment to its January 2024 circular regarding the handling of inoperative accounts and unclaimed deposits under the DEA Fund Scheme, 2014.
What’s Changed?
Under the Inoperative Accounts / Unclaimed Deposits in Banks – Revised Instructions (Amendment), 2025, the following new provisions now apply with immediate effect:
KYC Updation for Reactivation of Inoperative Accounts:
All banks (including RRBs & Co-operative banks) must provide KYC updation facility at all branches — including non-home branches.
Banks are required to enable KYC through Video Customer Identification Process (V-CIP), as per the latest KYC Master Directions (2016).
Additionally, banks may use authorised Business Correspondents to assist customers with reactivation, in line with Para 38(a)(iia) of the Master Direction.
Background
As per earlier instructions (Circular dated Jan 1, 2024), balances in deposit accounts inoperative for 10+ years or unclaimed amounts are to be transferred to the Depositor Education and Awareness (DEA) Fund maintained by RBI.
This update enhances customer accessibility and supports faster resolution of dormant account issues.
Reference:
Circular No. RBI/2025-26/52 | DOR.SOG(LEG).REC/32/09.08.024/2025-26
Dated: June 12, 2025
Issued under powers granted by Sections 35A, 26A, 51, and 56 of the Banking Regulation Act, 1949
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