Rs 6,800 crore stuck in unclaimed bank deposits handed to claimants in last 6 months

The Finance Ministry said on Friday that about Rs 6,800 crore lying in unclaimed bank deposits has been returned to close to 29 lakh claimants nationwide over the last six months, under an intensified effort to let people retrieve their funds.

A ministry statement noted that M. Nagaraju, Secretary of the Department of Financial Services, chaired a review meeting of public sector banks to evaluate their performance on operational, financial and strategic fronts for FY 2025‑26.

At the meeting, the coffee‑table book “Your Money, Your Right” was launched. It documents the nationwide drive to enable citizens to locate and reclaim unclaimed financial assets, and showcases the joint work of banks, financial firms, regulators and other parties in tracing, settling and returning such assets to their rightful owners.

Also unveiled was the refreshed Department of Financial Services website. Built with a citizen‑first mindset, the portal provides better accessibility, smooth navigation and clearer information sharing. It is offered in 23 regional languages and includes features for visually‑impaired users, underscoring the government’s pledge to inclusive, accessible digital services.

Participants included the Special Secretary of the Department of Financial Services, senior officials, the Chairman of the State Bank of India, and the Managing Directors, CEOs and Executive Directors of public sector banks.

The review covered PSB performance on business growth, profitability, asset quality, government‑scheme implementation, financial inclusion, digital ecosystem, MSME lending, cyber resilience and operational risk management.

It was noted that PSBs posted robust financial and operational results in FY 2025‑26. Their total business stood at about ₹283.3 lakh crore as of 31 March 2026, and net profit rose to roughly ₹1.98 lakh crore – the highest ever recorded for public sector banks.

Asset quality stayed solid, with gross NPAs dropping to a historic low of 1.93% and net NPAs falling to 0.39%, indicating stronger balance sheets and careful risk management.

The meeting also examined advances in major financial‑inclusion programmes such as Pradhan Mantri Jan Dhan Yojana, social security schemes, Pradhan Mantri Mudra Yojana, PM Vishwakarma and digital lending efforts. Public sector banks remain central to widening financial reach and improving last‑mile banking services nationwide.

The rollout of end‑to‑end digital lending pathways for small‑value loans and welfare‑linked schemes was reviewed. PSBs pointed out steps like paperless processing via e‑KYC and digital docs, straight‑through processing (STP) and linking with government platforms to boost access and customer experience.

Discussions also touched on fortifying the digital banking ecosystem, upgrading cyber‑security frameworks and launching initiatives to improve credit flow to MSMEs and other productive sectors.

Banks were urged to offer proactive, need‑based assistance to eligible borrowers under ECLGS 5.0, tighten grievance redressal with proper oversight, boost operational efficiency and seek new business avenues to maintain profitability and long‑term growth.

Banks were also reminded to stay ready and adaptable to the recent Middle‑East crisis and the shifting global landscape.