The Supreme Court on Tuesday (March 17, 2026) asked the Center and the RBI to explain why unclaimed funds lying idle in the bank accounts of dead persons cannot be made available to their heirs. | Photo Credit: Hindu Archives
The Supreme Court on Tuesday (March 17, 2026) asked the Center and the Reserve Bank of India to explain why unclaimed funds lying idle in the bank accounts of dead persons cannot be disclosed to their heirs.
A bench of Justices Vikram Nath and Sandeep Mehta rebuffed the government’s contention that the issue was in the realm of politics.
“Suppose a man has 10 different accounts in different countries, he dies intestate, how will his heirs get the details? He may not have done KYC. It is not a matter of policy. What is wrong with the information being given to the legal heirs? You will have to come up with some policy,” the Bench observed.
The court was hearing a plea by journalist Suchet Dalal to ensure that information about money held by investors and depositors in dormant or non-functional accounts is made publicly available on a centralized platform.
Appearing for the petitioner, Prashant Bhushan said the RBI has also recommended the need to have a centralized and searchable database so that people can trace the accounts of their deceased parents.
Additional Solicitor General N. Venkataraman, appearing for the Centre, said that if the true heir came forward, the amount was refunded to him from the Depositor Education and Education Fund. The Depositor Education and Awareness Fund, set up by the RBI in 2014, holds unclaimed deposits from commercial and cooperative banks.
The apex court asked the Center and the RBI to file fresh affidavits in the matter and posted the matter for hearing on May 5.
Published – 17 March 2026 22:43 IST
