Punjab Banking Crisis: ₹14,818 Crore Locked in 25 Million Inactive Accounts

Ludhiana, November 20, 2025 — A staggering 25.2 million bank accounts in Punjab have been lying dormant for over a decade, with approximately ₹14,818 crore in deposits transferred to the Reserve Bank of India’s Depositors Education and Awareness Fund (DEA), according to a recent State-Level Bankers’ Committee (SLBC) report.

The revelation has sparked concerns about financial awareness and banking practices in the state, prompting authorities to launch a massive campaign to reunite depositors with their unclaimed funds.

A Massive Financial Problem

The SLBC report, presented at a recent meeting, reveals that 25.2 million savings accounts across various banks in Punjab have seen no transactions for the past 10 years. These accounts, now classified as inactive under RBI regulations, contain thousands of crores of rupees that rightfully belong to account holders.

Adding to the concern, 35.97 lakh accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) have become inactive, with deposits worth ₹481 crore sitting unclaimed. Account holders have neither updated their details nor conducted any transactions in these accounts.

“Most of these accounts became inactive due to account holders relocating or transferring banks,” explained a banking official familiar with the matter. “We are actively searching for these account holders, and the committee is continuously issuing guidelines to banks for this purpose.”

PNB Leads in Inactive Accounts

Punjab National Bank (PNB) tops the list with 88.26 lakh inactive accounts containing deposits of ₹5,417 crore. State Bank of India (SBI) follows with 35.30 lakh inactive accounts holding ₹1,976 crore.

Other major contributors include:

Punjab State Cooperative Bank: 22.33 lakh accounts, ₹1,181 crore
Punjab Gramin Bank: 18.07 lakh inactive accounts
Union Bank of India: 15.33 lakh inactive accounts

Understanding the Inactive Account Process

Under RBI regulations, when a bank account shows no customer-initiated transactions for more than two years, it becomes inactive or dormant. If the account remains dormant for over 10 years, banks are required to transfer the funds to the RBI’s Depositor Education and Awareness Fund.

However, this doesn’t mean the money is lost. Account holders retain the right to reclaim their deposits at any time by following the proper procedure.

Banks Launch Recovery Campaign

The State-Level Bankers’ Committee has now initiated a special campaign to distribute these deposits to their rightful beneficiaries. Banks are employing multiple strategies to trace account holders:

Verification through registered addresses and documents
Contact via mobile numbers on record
Cross-referencing past transaction records
Aadhaar-based verification systems

The effort represents one of the largest financial recovery initiatives undertaken in Punjab’s banking sector.

How to Reclaim Your Money

The RBI has made the reclaiming process relatively straightforward. In 2023, the central bank launched the UDGAM portal (Unclaimed Deposits: Gateway to Access Information), a centralized platform where depositors can search for unclaimed deposits across multiple banks. As of July 2025, over 8.5 lakh users have registered on this portal.

Steps to reclaim your deposits:

Visit the UDGAM portal (udgam.rbi.org.in) or your bank’s website
Search for your account using personal details
Visit the nearest bank branch with KYC documents (Aadhaar, PAN card, address proof)
Submit a claim form with required documentation
Wait for bank verification and processing

Once the claim is validated, the RBI will credit the balance amount to the claimant’s account.

Preventing Account Deactivation

Banking experts recommend several precautions to prevent accounts from becoming inactive:

Essential steps:

Conduct at least one transaction every few months, even if minimal
Update contact information regularly with your bank
Periodically review all bank accounts and close unused ones properly
Monitor accounts through passbooks, net banking, or mobile apps
Respond promptly to any bank alerts or notices

“A simple deposit or withdrawal every six months is enough to keep an account active,” advised a senior bank manager. “With digital banking, this has become easier than ever.”

A Wake-Up Call for Financial Literacy

The massive scale of inactive accounts in Punjab highlights the need for greater financial awareness and regular account monitoring. Financial experts suggest that many account holders may not even be aware that their accounts have become dormant or that significant funds are waiting to be claimed.

The SLBC’s campaign represents a critical opportunity for thousands of Punjabis to recover their hard-earned money. Banking officials urge anyone who has held accounts in Punjab—or whose family members may have had accounts—to check the UDGAM portal or contact their banks directly.

With ₹14,818 crore at stake, the coming months could see a significant reunification of depositors with their forgotten wealth, provided awareness about the issue and the reclaiming process spreads effectively across the state.