Centre Flags Rs 363 Crore in Unclaimed Money with J&K Bank

SRINAGAR: Jammu and Kashmir Bank holds Rs 363.21 crore in unclaimed deposits as of June 30, 2025, placing it among the major private sector lenders with dormant funds, according to a statement tabled in the Lok Sabha by the Ministry of Finance.

The figures are part of the government’s latest disclosure on the quantum of unclaimed deposits in Indian banks, presented in response to a question by Dr M K Vishnu Prasad. These deposits—defined as savings, current accounts, or term deposits that have seen no activity for ten years—are transferred to the Reserve Bank of India’s Depositor Education and Awareness (DEA) Fund under a 2014 scheme. The scheme allows the funds to be used for depositors’ awareness campaigns and initiatives protecting their financial interests.

Nationwide, over Rs 58,330 crore lies in unclaimed deposits across public sector banks, while private sector banks account for Rs 8,674 crore. J&K Bank alone contributes Rs 363.21 crore to this tally, ahead of banks like Karnataka Bank, Karur Vysya Bank, and South Indian Bank. Only the biggest private lenders, such as ICICI Bank, HDFC Bank, and Axis Bank report higher dormant balances.

In a bid to return these funds to their rightful owners or heirs, the Reserve Bank of India has launched several initiatives, the most significant being the centralised web portal ‘UDGAM’—short for ‘Unclaimed Deposits – Gateway to Access Information’. As of July 1, 2025, over 8.59 lakh users have accessed the portal to trace unclaimed balances across multiple banks in one place.

The RBI has also directed all banks to publish lists of inactive accounts on their websites, actively trace depositors or their legal heirs, and resolve claims through a strengthened grievance redressal system. Banks are required to have board-approved policies on how such accounts are classified and reviewed periodically.

The Finance Ministry noted that Non-Banking Financial Companies (NBFCs) are currently exempt from transferring dormant funds to the DEA fund, and no state-wise breakup of unclaimed deposits is maintained by the Reserve Bank.

Under the 2014 scheme, a committee administers the DEA Fund, using the money for depositors’ education and related public awareness activities. This includes media campaigns, financial literacy drives, and portal development.

For JK Bank, long viewed as a key financial institution in the region, the Rs 363 crore figure underscores the need for deeper engagement with account holders, especially those with legacy accounts or lacking digital access. With thousands of families still unaware of dormant entitlements or unclear about claim procedures, the government’s thrust on UDGAM aims to bridge the gap between forgotten funds and rightful claimants.

As the Finance Ministry renews its appeal to citizens to use the UDGAM portal and check for forgotten balances, the ball is also in the banks’ court—J&K Bank included—to proactively reconnect with customers, and ensure that unclaimed wealth finds its way home.