Explained:The Performance Audit of DEA Fund

In ABC Research
October 1, 2025
Team ABC
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New Delhi (ABC Live): The Depositor Education and Awareness (DEA) Fund, administered by the Reserve Bank of India (RBI), was created under Section 26A of the Banking Regulation Act, 1949, through the Banking Laws (Amendment) Act, 2012. Operational since May 24, 2014, it was designed to safeguard unclaimed deposits and promote depositor awareness. Over a

New Delhi (ABC Live): The Depositor Education and Awareness (DEA) Fund, administered by the Reserve Bank of India (RBI), was created under Section 26A of the Banking Regulation Act, 1949, through the Banking Laws (Amendment) Act, 2012. Operational since May 24, 2014, it was designed to safeguard unclaimed deposits and promote depositor awareness.

Over a decade later, the DEA Fund has swelled into a massive pool: ?78,213 crore as of March 2024. This ABC Live Performance Audit evaluates whether the Fund has lived up to its promise of protecting depositors and promoting financial literacy.

Corpus Growth: Rising at Speed

?62,225 crore in Mar 2023 ? ?78,213 crore in Mar 2024 (26% YoY increase).
Bank-wise (June 2025): SBI ?19,329.92 cr; PNB ?6,910.67 cr; Canara Bank ?6,278.14 cr; Union Bank ?5,104.50 cr; BoB ?5,277.36 cr.
Public sector banks account for ~87% of the corpus.

? Audit finding: Growth reflects stronger compliance but also rising unclaimed balances due to weak nominations, low awareness, and procedural hurdles.

Claims & Disbursements: A Serious Bottleneck

?5,729 crore refunded via banks over five years (till Jul 2023) — only ~7.3% of corpus.
8 lakh+ individuals reclaimed deposits through UDGAM and bank claims as of mid-2025.

? Audit finding: Settlement ratio is far below target, and RBI does not disclose annual or bank-wise claim performance.

Awareness & Access: Progress, but Patchy

UDGAM portal (2023): One-stop search across ~30 banks (~90% of value).
Simplifications (2025): Video-KYC, any branch reactivation, and nominee claims up to ?15 lakh (commercial banks) / ?5 lakh (co-ops).

? Audit finding: Good progress, but awareness penetration remains weak, especially in rural areas.

Governance & Transparency: Weakest Link

Framework: Section 26A + DEA Fund Scheme, 2014.
Gap: No annual inflow–outflow statement, no claim TAT disclosures, no awareness expenditure reporting.

? Audit finding: Legally strong, but operationally opaque.

New Reform: Accelerated Payout Scheme (2025–26)

Duration: Oct 1, 2025 – Sep 30, 2026.
Incentives for banks: 5%–7.5% payout capped at ?5k–?25k per settled claim.
Potential impact:
- 15% recovery = ?11,700 crore returned.
- 25% recovery = ?19,500 crore returned.

? Audit finding: Strong step aligning bank incentives with depositor interests, but success depends on transparency.

Performance Audit of DEA Fund Performance Scorecard

Dimension	Metric / Indicator	Target or Ideal	Verified Value / Status	Remarks / Gap
Corpus & Inflows	Total transferred into the DEA	—	?78,213 crore (Mar 2024)	Reflects a massive stock of unclaimed deposits, rising year-on-year.
Claims Volume	Number of claims settled (annual)	Tens/hundreds of thousands	800,000+ (cumulative via UDGAM till Jul 2025)	Verified via media reporting; annual breakdown unavailable.
Rupee Disbursement	Amount disbursed to claimants (via banks reimbursed from DEA)	?10–20% of inflow annually	?5,729 crore (aggregate, last 5 years to Jul 2023)	From the PIB / Lok Sabha reply, far below the ideal.
Claim Settlement Ratio	Disbursed ÷ Transferred (annual or cumulative)	?15%	~7.3% (?5,729 cr ÷ ~?78,213 cr)	Low efficiency; systemic bottlenecks.
Turnaround Time (TAT)	Median days per claim	?30 days	Not publicly reported	RBI/banks should disclose.
Bank Outreach	UDGAM coverage	100%	~30 banks (~90% by value)	Not universal; excludes RRBs and co-ops.
Awareness Penetration	Share of population aware of UDGAM	?50%	Unknown	Needs a nationwide survey.
Transparency & Reporting	Annual inflow–outflow reporting	Annual dashboard	Partial (Lok Sabha replies, FAQs)	No consolidated RBI report.
Process Simplification	Claim ease reforms	Balanced, accessible	Video-KYC, any branch, BCs, ?15 lakh/?5 lakh thresholds	Good start, needs monitoring.

Audit Takeaway:
The DEA Fund is legally sound but operationally weak. Its corpus keeps rising, payouts remain low, and transparency is lacking. Without stronger disclosure, full UDGAM rollout, and awareness campaigns, it risks being viewed as a warehouse of idle money rather than a trust-building tool for depositors.

Recommendations of the Performance Audit of the DEA Fund

Annual DEA Report: RBI should publish inflows, outflows, bank-wise claims, TATs, and awareness spending.
Universal UDGAM Coverage: All banks, including co-ops and RRBs, must be integrated.
Mandatory nomination/refusal at account opening to curb future unclaimed deposits.
Heir-friendly claim system: Standardised documents + death registry linkage.
CSR-backed awareness drives in rural/semi-urban India.

Why ABC Live Publishes Performance Audit of DEA Fund Now

With RBI launching the Accelerated Payout Scheme (2025–26), this is the decisive year for the DEA Fund. ABC Live is publishing this audit to highlight both achievements and failures: a fund created to empower depositors has, so far, become a storehouse of unclaimed money. But with better governance and transparency, it can still be transformed into a living instrument of financial justice.