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Category — GS Paper 2 ///Published — 2026-05-07 ///Exam — Both Prelims and Mains ///Tags — Rapid Fire CA, Quick Facts For Prelims, GS Paper - 2 ///Category — GS Paper 2 ///Published — 2026-05-07 ///Exam — Both Prelims and Mains ///Tags — Rapid Fire CA, Quick Facts For Prelims, GS Paper - 2 ///

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Supreme Court Reviews RBI's UDGAM Portal for Dormant Funds

The Supreme Court is examining RBI's UDGAM (Unclaimed Deposits – Gateway to Access Information) portal following PIL concerns about dormant funds being transferred to government-managed pools and difficulties faced by heirs in accessing them. Launched in August 2023, the portal integrates 30 banks representing 90% of the Depositors' Education and Awareness Fund (DEAF), with over 20 lakh users and 44 lakh searches recorded by April 2026.

2026-05-07

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What is UDGAM Portal?

The UDGAM (Unclaimed Deposits – Gateway to Access Information) portal is a digital platform launched by the Reserve Bank of India (RBI) to help identify unclaimed deposits and accounts across multiple banks.

Key Features

Purpose: Allows users to identify unclaimed deposits/accounts and facilitates claiming deposits or reactivating accounts
Important Limitation: The portal facilitates identification ONLY; it does not handle claim settlements
Integration: Covers 30 banks accounting for nearly 90% of DEAF funds
User Statistics: Over 20 lakh users and 44 lakh searches conducted by April 2026
Launch Date: August 2023
Enhancements Added:
Optional user registration
Improved search interface with address-based queries
Relaxed restrictions on logins and searches

Background: The Supreme Court Case

The Supreme Court is reviewing the portal's operation in response to a Public Interest Litigation (PIL) that highlighted:

Concerns about dormant funds being transferred to government-managed pools
Challenges faced by heirs in accessing unclaimed funds

Challenges Identified

1. Limited Asset Integration

Does NOT include:
Post office deposits
Provident funds
Insurance schemes
Makes it difficult for legal heirs to access all unclaimed assets in one place

2. Lack of Awareness

Legal heirs often unaware of unclaimed funds
Banks frequently fail to inform heirs about dormant accounts

3. Complicated Claims Process

Banks require extensive legal documentation:
Succession certificates
Probate (even when there is a clear, undisputed will)
Creates unnecessary bureaucratic hurdles for legitimate claimants

Legal Framework

DEAF (Depositors' Education and Awareness Fund): Funds from unclaimed deposits are transferred to this fund managed by RBI for depositor education and awareness activities
Banks must attempt to contact account holders before transferring dormant funds
RBI Guidelines on Inoperative Accounts govern the handling of unclaimed deposits

Significance for Governance

Financial Inclusion: Ensures unclaimed funds don't become permanent government revenue
Consumer Protection: Addresses asymmetries in information access
Digital Governance: Demonstrates RBI's use of technology for public welfare
Right to Property: Raises questions about constitutional property rights of heirs