The RBI has launched an incentive scheme to reduce dormant bank accounts and unclaimed funds from today till September 30, 2026. This will be 7.5% of the amount or up to a maximum of Rs 25,000 for accounts that have been inactive for more than 10 years.
The Reserve Bank of India (RBI) has launched a one-year incentive scheme, starting today, October 1st, aimed at reducing inoperative accounts and unclaimed funds. Under this scheme, banks will be provided incentives based on the deposits and the period of inactivity in those accounts, so that banks proactively contact customers to reactivate their accounts and return the unclaimed funds to the rightful owners.
Incentive structure
Banks will receive a 5% incentive, or up to ₹5,000 (whichever is lower), on deposits held in inactive accounts for up to four years. For accounts held inactive for four to eight years, the incentive will be 6%, or up to ₹10,000. For accounts held inactive for eight to ten years, the incentive will be 7%, or up to ₹15,000. For accounts held inactive for more than ten years, the incentive will be 7.5%, or up to ₹25,000.
Objective and benefits of the scheme
This scheme is designed to increase transparency in the banking sector and protect depositors’ funds. Deposits in unclaimed accounts are immediately transferred to the DEA (Depositor Education and Awareness) Fund, but customers can retrieve these funds at any time. This scheme will strengthen the procedural right to recover deposits, thereby fostering financial trust and inclusion.
Convenience for customers
Customers can now reactivate their inactive accounts through video-KYC updates at any bank branch or business correspondent. Banks will submit a quarterly report of incentive claims to the RBI, which will be verified by senior management.
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