Starting October 1, 2025, the Reserve Bank of India (RBI) has introduced a one-year incentive scheme to reduce inactive bank accounts and unclaimed funds.
Under this scheme, banks will earn incentives based on the deposits and the duration of inactivity in these accounts.
The goal is to encourage banks to contact customers, reactivate accounts, and return unclaimed funds to their rightful owners.
How the Incentive Works
The scheme offers different incentive rates depending on how long an account has been inactive:
Up to 4 years: 5% incentive, up to ₹5,000
4 to 8 years: 6% incentive, up to ₹10,000
8 to 10 years: 7% incentive, up to ₹15,000
More than 10 years: 7.5% incentive, up to ₹25,000
Banks will earn these incentives when they successfully reactivate accounts and return the funds to customers.
Purpose and Benefits
The scheme aims to increase transparency in banking and protect depositors’ funds. Unclaimed deposits are transferred to the Depositor Education
and Awareness (DEA) Fund, but customers can still claim their money at any time. By strengthening the right to recover deposits, the scheme builds financial trust and inclusion.
Easy Account Reactivation
Customers can reactivate inactive accounts through video-KYC updates at any bank branch or via a business correspondent.
Banks must also submit quarterly reports of incentive claims to the RBI, which are checked by senior management to ensure compliance.
