Public Sector Banks Transfer ₹60,518 Crore of Unclaimed Funds to RBI

As of January 2026, public sector banks in India have transferred a substantial ₹60,518 crore of unclaimed funds to the Reserve Bank of India's Depositor Education and Awareness (DEA) Fund. This marks a significant amount of funds remaining inactive within the banking system. 

Details of the Unclaimed Funds Transfer 

The unclaimed funds from public sector banks, now totalling ₹60,518 crore, have been directed to the RBI's DEA Fund, according to information presented to the Rajya Sabha on March 24, 2026.  

These funds remain unclaimed, primarily due to inactive accounts and unclaimed deposits across various bank branches in the country. 

In addition to the funds transferred by banks, unclaimed insurance amounts stood at ₹8,973.89 crore as of February-end, while mutual fund unclaimed amounts totalled ₹3,749.34 crore under SEBI regulations. These statistics emphasize the growing volume of unclaimed financial assets in the country. 

Efforts to Manage Unclaimed Financial Assets 

The Minister of State for Finance, Pankaj Chaudhary, highlighted several initiatives aimed at addressing the issue of unclaimed funds.  

These efforts focus on identifying rightful claimants and expediting the claims process to reduce both existing and future unclaimed financial assets.  

The intention is to streamline the claim process for citizens and ensure that funds are returned to legitimate owners promptly. 

Read More: Liquidity Support: RBI Pumps ₹79,256 Crore Through Overnight VRR Amid Liquidity Deficit! 

Interest in Sovereign Green Bonds 

The government has also been monitoring the interest levels in Sovereign Green Bonds (SGrBs). The average bid-cover ratio for these bonds since their inception in FY 2022-23 has remained above 2.  

As of FY 2025-26, the bid-cover ratio stands at 2.32, reflecting stable investor confidence in these bonds. Notably, investors offered a greenium of 7 basis points in the latest auction, held on November 28, 2025, indicative of the bonds' desirability. 

Conclusion 

The transfer of ₹60,518 crore of unclaimed funds from public sector banks to the RBI highlights the vast scale of untraceable financial assets in India. Efforts are underway to address this issue by aiding claim processes and boosting transparency within financial institutions. Meanwhile, green bonds continue to attract investor interest, underscoring a growing trend towards sustainable financial products. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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