The Reserve Bank of India (RBI) has issued the Revised Instructions (Amendment), 2025 under the Inoperative Accounts/ Unclaimed Deposits in Banks guidelines.
The amendment, effective immediately, updates earlier directions issued under Circular DOR.SOG (LEG).REC/64/09.08.024/2023-24 dated January 1, 2024, which mandated that balances in accounts unused for over 10 years be transferred to the Depositor Education and Awareness (DEA) Fund maintained by the RBI.
Key Highlights of the Revised Instructions
- Easier KYC Updation: Banks must now allow customers to update their Know Your Customer (KYC) details at any bank branch, including non-home branches, for reactivating inoperative accounts and claiming unclaimed deposits.
- Digital KYC via Video-CIP: Banks are encouraged to use Video Customer Identification Process (V-CIP) to facilitate remote and paperless KYC updates, aligning with the Master Direction on KYC, 2016.
- Use of Business Correspondents: RBI has also permitted banks to leverage their network of authorised Business Correspondents (BCs) to help customers, especially in rural and remote areas, update KYC and reactivate dormant accounts.
Official copy of the notification is as follows
RBI/2025-26/52
DOR.SOG(LEG).REC/32/09.08.024/2025-26
June 12, 2025
All Commercial Banks (including RRBs) and all Co-operative Banks
Madam/ Dear Sir
Inoperative Accounts/ Unclaimed Deposits in Banks - Revised Instructions (Amendment) 2025
As per instructions, issued vide circular DOR.SOG (LEG).REC/64/09.08.024/2023-24 dated January 1, 2024 (hereinafter called the extant instructions), the credit balance in any deposit account maintained with banks, which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, as mentioned in paragraph 3(iii) of the "Depositor Education and Awareness" (DEA) Fund Scheme, 2014, are required to be transferred by banks to DEA Fund maintained by the Reserve Bank of India. There is a need to enable Business Correspondents to facilitate updation of KYC.
2. Accordingly, in exercise of the powers conferred by sections 35A of the Banking Regulation Act, 1949 read with sections 26A, 51 and 56 of the Act ibid and all other provisions of this Act or any other laws enabling Reserve Bank to issue instructions in this regard, these instructions are being issued to amend the extant instructions as given hereunder.
3. (i) These instructions shall be called the Inoperative Accounts/ Unclaimed Deposits in Banks - Revised Instructions (Amendment), 2025.
(ii) The amended instructions shall come into force with immediate effect.
4. In the extant instructions, the paragraph 6.1 is hereby substituted by the following, namely:
"6.1 A bank shall make available the facility of updation of KYC for activation of inoperative accounts and unclaimed deposits at all branches (including non-home branches). Further, a bank shall endeavour to provide the facility of updation of KYC in such accounts and deposits through Video-Customer Identification Process (V-CIP). The V-CIP related instructions under Master Direction - Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time) shall be adhered to by the bank. Additionally, the services of an authorised Business Correspondent of the bank may be utilized for activation of inoperative accounts as prescribed in paragraph 38(a)(iia) of the above Master Direction."
Yours faithfully
(Usha Janakiraman)
Chief General Manager-in-Charge
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