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Supreme Court seeks govt response on unclaimed deposits and heir access
The Supreme Court directed the Union government and SEBI to file a response on the mechanism to inform legal heirs about unclaimed deposits in banks, mutual funds, and depositories. It noted the existence of a centralised portal, UDGAM, and questioned its integration with government banks, while RBI described its scope as informational only and not a claims portal.
Why It Matters
This affects how heirs locate dormant accounts and access unclaimed assets, potentially influencing _how_ claims are initiated and processed across financial institutions.
Timeline
2 Events
Supreme Court hearing on unclaimed deposits and heir access
May 5, 2026
During a public interest litigation filed by journalist Sucheta Dalal, a bench headed by Justice Vikram Nath directed the Union government and SEBI to file a response on the mechanism for informing legal heirs of deceased account holders with unclaimed deposits across banks, mutual funds and depositories. The court noted that banks sometimes contact legal heirs after a death and suggested updating KYC details with banks as a solution. The bench questioned whether all government banks have been integrated with the UDGAM portal and urged timely migration of data from banks to the portal. The Ministry of Finance stated that an affidavit on this integration is being prepared. RBI clarified that the portal only provides information about accounts and is not a claims settlement platform, meaning legal heirs must approach the concerned bank for claims.
UDGAM portal exists since 2023 with banks onboarded
2023
The RBI informed the court that the centralised portal UDGAM (Unclaimed Deposits - Gateway to Access Information) has existed since 2023, with around 30 banks onboarded and about 2 million people registered. The portal provides information on bank accounts in the name of deceased individuals when basic details and identity documents are supplied.