Public sector banks have transferred a cumulative ₹60,518 crore of unclaimed deposits to the Reserve Bank of India’s Depositor Education and Awareness (DEA) Fund as of January 2026, highlighting the scale of inactive financial assets within the banking system.
Unclaimed Funds: Key Details
The transfer of unclaimed funds was disclosed in the Rajya Sabha on March 24, 2026. These funds typically arise from dormant accounts and deposits that have remained inactive over extended periods across bank branches.
Beyond banking deposits, unclaimed financial assets span multiple segments:
- Unclaimed insurance funds stood at ₹8,973.89 crore as of February-end
- Unclaimed mutual fund assets totalled ₹3,749.34 crore under the oversight of the Securities and Exchange Board of India
These figures collectively point to a significant pool of idle financial resources across the financial ecosystem.
Government Initiatives to Address the Issue
Pankaj Chaudhary, Minister of State for Finance, outlined measures aimed at reducing unclaimed assets and improving recovery by rightful owners.
The initiatives focus on:
- Identifying beneficiaries linked to inactive accounts
- Simplifying and accelerating the claims process
- Enhancing awareness among depositors and nominees
The broader objective is to ensure timely return of funds and minimise the accumulation of such balances going forward.
Investor Interest in Sovereign Green Bonds
Separately, the government highlighted sustained investor participation in Sovereign Green Bonds (SGrBs). Since their introduction in FY 2022–23, these instruments have maintained an average bid-cover ratio above 2.
For FY 2025–26, the bid-cover ratio stands at 2.32, indicating stable demand. In the latest auction held on November 28, 2025, investors were willing to accept a “greenium” of 7 basis points, reflecting continued appetite for environmentally focused investment products.
Summary
Public sector banks have transferred ₹60,518 crore in unclaimed deposits to the Reserve Bank of India’s DEA Fund, underscoring the scale of dormant financial assets in India. Alongside this, significant unclaimed amounts persist in insurance and mutual funds. The government is taking steps to streamline claims and improve fund recovery, while investor interest in Sovereign Green Bonds remains steady, supported by consistent demand and favourable bid-cover ratios.
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