The banking sector is constantly undergoing changes, and this year saw two major and extremely important changes for customers. This is especially good news for those who had forgotten about the money deposited in their old accounts or whose accounts have not seen any transactions for a long time. Furthermore, the rules regarding nominees have become simpler and more beneficial than ever before.
Withdrawal of unclaimed funds through a nominee has become easier
Many bank accounts in India have been lying dormant for years, with no account holder information available. These are called unclaimed deposits. This idle money remains in the banking system for a long time, but due to proactive initiatives by the government and the Reserve Bank of India (RBI), the process of transferring these funds to their rightful beneficiaries has accelerated.
According to information presented in Parliament, between April 2022 and November 2025, Indian banks returned more than ₹10,000 crore of unclaimed funds to their rightful owners. This move not only brings transparency to the banking system but also provides an opportunity for ordinary people to recover their lost money. Union Minister of State for Finance Pankaj Chaudhary stated that both public and private banks have identified and resolved millions of inactive accounts.
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DEA Fund Scheme and Settlement of ₹58,000 Crore
The RBI has implemented the Depositor Education and Awareness Fund (DEA Fund Scheme). Under this scheme, if there is no activity in a savings, current, or fixed deposit account for 10 years, the bank transfers the funds to the RBI’s central fund. This ensures that the money is safe and can be returned to the owner when it arrives.
By June 30, 2025, public sector banks had transferred ₹58,000 crore to the DEA Fund. SBI alone led with deposits of ₹19,330 crore. Private banks were also not far behind, transferring a total of ₹9,000 crore to the fund. RBI regulations require banks to publish a list of unclaimed accounts on their websites and actively search for heirs of deceased account holders.
The biggest change in the banking sector
Effective November 1, 2025, the banking sector’s nominee rules have undergone a major change. You can now nominate four nominees for your bank account, locker, or any other safe deposit box, instead of one. Previously, most banks only allowed one nominee. Under the new rules, having four nominees provides quick access to funds to various family members after the account holder’s death.
Customers can determine the share of the nominees as per their wishes. Up to four nominees can be named for a locker, and their order of ownership can be determined. This means that if the first nominee is unavailable, the second-ranking nominee can claim it. This change has reduced legal complications, reduced property disputes within the family, and enabled faster access to funds.
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