Chandigarh witnessed a notable transfer of unclaimed bank deposits to the Reserve Bank of India (RBI) after a large number of accounts remained inactive for years, resulting in nearly Rs 12 crore being moved to the central bank’s vaults. According to official data compiled from banks in the city, 573 bank accounts with dormant balances were classified as unclaimed and subsequently transferred to the Depositor Education and Awareness Fund (DEAF), as per RBI regulations. The transfers took place in the quarter from October 1 to December 31, 2025, and reflect a broader issue of dormant savings in the city’s financial ecosystem.
The Lead District Manager (LDM) of Chandigarh, SK Singhal, disclosed that the transfers were made in compliance with statutory guidelines that require unclaimed bank balances to be moved to the RBI once an account remains inoperative for ten years or when deposits are not claimed within the stipulated timeframe. Under these guidelines, banks must periodically review accounts and classify those with no activity as inactive, eventually resulting in transfer of funds to the DEAF if no action is taken by account holders.
The total amount of Rs 11.95 crore that was moved from these inactive accounts was dispersed across a number of Chandigarh-based public and private lenders. Even while the money is safe with the RBI and can be retrieved later through a proper procedure, account holders and their relatives were frequently uninformed that accounts with no transactions for long periods of time could lose direct access to their funds.
Bank-Wise Breakup Reveals Significant Deposits Lost to Inactivity:
An analysis of the figures shows that Punjab National Bank (PNB) accounted for the largest share of the transferred sums. From 107 inactive accounts, PNB moved Rs 8.89 crore to the RBI’s DEAF. The State Bank of India (SBI) also saw a substantial amount transferred, with 258 accounts contributing Rs 2.22 crore of the total. Smaller amounts were shifted by several other banks, highlighting how widespread the issue of unclaimed deposits is across different financial institutions in the city.
Other contributions included Rs 41 lakh from 16 accounts of the Central Bank of India, Rs 14 lakh from 24 accounts of Indian Bank, and Rs 8 lakh from 18 accounts of Punjab & Sind Bank. Bank of India transferred funds from 31 accounts amounting to Rs 7 lakh, while HDFC Bank moved Rs 5 lakh from 12 accounts. Additional smaller transfers were reported by Union Bank of India (Rs 3 lakh from 77 accounts), Canara Bank (Rs 2 lakh from 9 accounts), Bank of Maharashtra (Rs 2 lakh from 16 accounts), and Indian Overseas Bank (Rs 40,000 from 5 accounts).
The widespread distribution of inactive accounts across many banks reflects both the volume of dormant funds in the system and a general lack of stringent monitoring of account activity by depositors. Such inactivity not only ties up funds but also highlights gaps in financial awareness among customers regarding the significance of regular account usage and updating of essential documentation.
Money Is Not Lost Forever but Retrieval Is Involved:
Officials highlighted that while these funds have been transferred to the RBI, they are not lost permanently. The money remains secure and belongs to the original account holders, nominees, or legal heirs, who can claim it back by following required procedures. However, claiming these unclaimed funds can take time, especially if Know Your Customer (KYC) details or nomination information is incomplete or outdated.
Singhal pointed out that many depositors and their families were unaware that accounts become inactive when there are no customer-initiated transactions over a long duration, eventually triggering transfer of those funds to the RBI’s DEAF. He stressed that while the funds can still be retrieved, the process becomes more onerous when supporting documentation is missing. The importance of this issue extends beyond Chandigarh. In the neighbouring state of Punjab, authorities reported that 83.32 lakh inactive bank accounts with a cumulative balance of Rs 3,197 crore were transferred to the RBI under similar circumstances, drawing statewide attention to unclaimed bank balances and prompting authorities to increase depositor outreach efforts.
Government Campaign Pushes Depositor Awareness:
Both Chandigarh and Punjab took part in the Government of India’s ‘Your Money – Your Right’ campaign, a three-month long public awareness initiative run from October 1 to December 31, 2025. The campaign’s objective was to help citizens trace and reclaim unclaimed bank deposits, mutual fund payouts, and insurance proceeds before they were moved into the RBI’s vault. Through this campaign, authorities and banks organised special camps to assist depositors with re-KYC processes, nomination updates, and filing claims.
In addition, people were advised to visit nearby bank offices or use digital resources like the RBI’s Udgam Portal to monitor the status of dormant accounts and submit claims as needed. Using their names and addresses, users can search the portal for unclaimed deposits, which they can subsequently follow through the bank with the necessary verification paperwork. Singhal highlighted that taking immediate action on dormant accounts might lessen the difficulty of the retrieval procedure and stop money from falling into long-term dormancy. People can prevent their deposits from being transferred to the RBI in the future by regularly executing transactions, updating KYC information, and making sure nomination details are current.
The transfer of nearly Rs 12 crore from inactive accounts in Chandigarh is a cautionary tale for depositors on the importance of staying engaged with their banking relationships. While the funds remain safe and claimable, the lesson for many is clear: monitor your accounts regularly, update documentation, and take swift action to prevent long periods of inactivity that could result in loss of immediate access to your own money.
