The Reserve Bank of India (“RBI”), in exercise of the powers conferred by Section 35A read with Section 26A, Section 51 and Section 56 of the Banking Regulation Act, 1949, vide Circular No. DOR.SOG(LEG).REC/32/09.08.024/2025-26,[1] dated June 12, 2025, has issued revised instructions titled Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions (Amendment), 2025, effective immediately.
These amendments modify the provisions set out in the RBI circular dated January 01, 2024, which require banks to transfer the credit balance in deposit accounts that have remained inoperative or unclaimed for 10 (ten) years or more to the Depositor Education and Awareness (DEA) Fund.
Pursuant to the same, the RBI has now mandated that banks must provide customers with the facility to update their Know Your Customer (“KYC”) details for reactivating such inoperative accounts and unclaimed deposits at all branches, including non-home branches.
Further, banks are expected to offer KYC updation services through the Video-Customer Identification Process (V-CIP), in compliance with the applicable provisions of the Master Direction on KYC, 2016. Additionally, the banks may utilize the services of their authorized Business Correspondents to assist in the activation process.
[1] https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12864&Mode=0