What is a DEAF Account

DEAF is an account maintained by Reserve Bank of India (RBI). Some of your money might be lying in a DEAF account and you might just not be aware of it.

Read on...

Have you ever wondered what happens to the money lying in a bank account which you forgot? Or to the money in a bank account where the account owner dies without a nominee and the family is not aware of this account?

Let us look at some interesting statistics to show you that this is not an insignificant amount being talked about.

History

The unclaimed deposits have been rising with RBI from Rs. 7,875 Crores in 2014-15 to Rs. 48,263 Crores in 2021-22.
Imagine, Rs. 48,000 Crores unclaimed amount. 

Yes, the money is unclaimed, and accounts have become inoperative. But where does this unclaimed money go? No, it does not go to the bank. Banks do not become automatic beneficiaries in such cases of unclaimed money. 

After a defined timeline, the money gets transferred to a specific account called as a DEAF account.

What is a DEAF Account

DEAF stands for Depositors Education and Awareness Fund. DEAF Scheme was established in 2014 and was inserted in the Banking Regulation Act, 1949 empowering the central bank.

The Reserve Bank of India has mandated banks to identify accounts where there has been no customer-initiated transaction for a period of more than 10 years. As per the regulation, banks are required to transfer credit balance in such accounts to Depositors Education and Awareness Fund (DEAF).

That said, the customers can still reclaim the deposits from their bank along with the interest owed, by following a defined procedure.

How does RBI manage DEAF Funds

The DEAF is managed by a committee headed by a deputy governor of the RBI and has six members. The committee’s role is to decide how the amount has to be utilized and the primary aim to undertake educational initiatives for customers. 

The initiatives include information-sharing seminars or research projects related to banking. The committee will also advise the RBI on the rate of interest that should be paid to depositing banks for the funds got from the banks. 

The rate of interest paid changes from time to time for the banks and their depositors. 

Why are people not claiming their deposits

There could be various reason for the money going unclaimed. Some of the common ones are:

- Death of depositor, and nominee not being aware of specific bank accounts.

- Small amounts or accounts may simply be forgotten by the depositor over time.

- Movement of the depositor across cities or countries.

There could be more reasons as well. While there have been many awareness campaigns to inform the customers as their accounts are about to become inoperative, but the steadfast increase in the unclaimed amounts tell a different story altogether.

Is any of your money unclaimed

No one has the answer to this question - not even you. And that is because if you have forgotten the money, then how would you remember that it is lying unclaimed. How to find out whether you have any unclaimed funds with any bank?

To try this out, you can visit respective bank's website, and look for the link to search for unclaimed deposits. One has to enter basic information to retrieve the details. Most banks publish the names of such DEAF or unclaimed deposit owners though they do not display the amount. 

If you find your name on the list, you will need to approach the bank with relevant papers to stake claim on your deposits.

Few links below to help you begin with your discovery of assets:

Click here to search for your unclaimed money with ICICI Bank

Click here to search for your unclaimed money with HDFC Bank

When I tried to search for my name in HDFC Bank, I got the 5 people with my name who have an inoperative account with HDFC Bank. Of course, none of them was my address. So, I do not think I have an unclaimed account with HDFC Bank. 

Now, I have to try my luck with another bank.

Just search for your bank and mention unclaimed deposits on the web, and you should get the link for your bank.

Summary

The paradox in this entire issue is that if you have forgotten your money with some bank, how would you know that you should look into a particular website to search for your name (its forgotten :)). 

RBI is trying to build a central repository to publish all the names and allow the public to search through the list. But this is going to take time. 

Until then, try to remember all the banks where you had the accounts a few decades back and try and search on their website for a list and search for your name. Who knows, you may just discover some more wealth.

Happy searching!

Regards

Manoj Arora
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