30 banks integrated with UDGAM portal to help legal heirs trace funds, Pg14

Key Highlights:

• RBI's UDGAM portal now includes 30 banks, assisting legal heirs in tracing funds of deceased account holders.
• The UDGAM portal was created in response to a PIL highlighting the transfer of funds from dormant accounts to government-managed pools.
• These 30 banks integrated into the portal represent approximately 90% of the funds held in the Depositors’ Education and Awareness Fund (DEAF).

Detailed Insights:

• The UDGAM portal facilitates the identification of unclaimed deposits, enabling depositors or claimants to approach the relevant bank for claim settlement.
• The Depositors’ Education and Awareness Fund (DEAF) was established by the RBI in 2014 to manage unclaimed deposits from commercial and co-operative banks.
• Deposits in post offices, provident funds and insurance schemes are not yet integrated into the portal, posing a challenge for legal heirs.
• The Supreme Court has requested the Centre and SEBI to provide circulars and steps taken to return unclaimed funds of deceased persons held with banks and financial institutions.

Key Concepts Involved:

• UDGAM (Unclaimed Deposits – Gateway to Access InforMation): A centralized web portal by RBI to help trace unclaimed deposits.
• Depositors’ Education and Awareness Fund (DEAF): A fund created by RBI in 2014 to hold unclaimed deposits from banks.
• Public Interest Litigation (PIL): A lawsuit filed in the public interest, addressing grievances of a larger group.