The Reserve Bank of India (RBI) informed the Supreme Court that 30 banks have been integrated with the UDGAM (Unified Fund Tracing Mechanism) portal, designed to help legal heirs locate unclaimed funds—deposits, investments, and other assets—of deceased individuals. This integration allows heirs to search for and claim these funds across multiple banks through a single online platform.
The UDGAM portal was developed by the National e-Governance Services Limited (NeSL) under the guidance of the RBI. It addresses a long-standing issue of difficulties faced by families in identifying and claiming funds left behind by deceased relatives, often due to a lack of awareness about the existence of accounts or the complexities of dealing with multiple financial institutions.
Currently, approximately ₹35,000 crore in unclaimed funds are held by these 30 banks. The RBI stated that all public sector banks and some private sector banks are now part of the UDGAM system, with efforts underway to onboard more banks and financial institutions.
The Supreme Court was hearing a Public Interest Litigation (PIL) seeking a centralized system for tracing and claiming unclaimed funds. The court directed the RBI to publicize the UDGAM portal widely to ensure maximum awareness among citizens.
The process involves legal heirs registering on the UDGAM portal and providing details of the deceased. The system then searches across participating banks to identify any unclaimed funds. Heirs will need to submit necessary documents, such as a death certificate and succession certificate or legal heir certificate, to claim the funds.
The RBI emphasized that the portal is a significant step towards improving financial inclusion and protecting the rights of legal heirs. The integration is ongoing, and the RBI aims to expand the scope of UDGAM to include other financial entities like insurance companies and mutual funds in the future. The portal is accessible at https://udgamportal.neisl.co.in/.
