RBI Revises Guidelines for DEA Fund Scheme: New Rules Effective from October 1, 2025

The Reserve Bank of India (RBI) has officially issued revised operational guidelines for its Depositor Education and Awareness (DEA) Fund Scheme, 2014. These revised guidelines are scheduled to take effect from October 1, 2025, and apply to a wide range of banking institutions, including commercial and co-operative banks, Regional Rural Banks (RRBs), Urban Co-operative Banks, Small Finance Banks, Payments Banks, and Local Area Banks. The aim behind these changes is to consolidate the fragmented directions issued over the years and simplify operational requirements to create a more structured, transparent, and digitally aligned framework.

Objective of the DEA Fund Scheme

The Depositor Education and Awareness (DEA) Fund Scheme was established under Section 26A of the Banking Regulation Act, 1949. It serves two primary objectives:

• It aims to protect the interests of depositors by pooling all unclaimed and inoperative deposit accounts lying idle in various banks across India. This includes savings and current accounts, fixed and recurring deposits that have remained inactive for 10 years or more, along with the accrued interest.

• The DEA Fund also focuses on spreading financial literacy by sponsoring educational programs, workshops, research, and awareness campaigns. These initiatives are meant to empower depositors to make informed financial decisions and become more aware of their rights and responsibilities.

Who These Guidelines Apply To?

The revised guidelines cover a broad spectrum of banking institutions. These include all commercial banks such as Scheduled Commercial Banks, Regional Rural Banks, Payments Banks, Small Finance Banks, and Local Area Banks. Additionally, they apply to all co-operative banks, both urban and rural. With this comprehensive coverage, the RBI ensures that the entire banking ecosystem follows a unified operational protocol for managing unclaimed deposits.

This update nullifies and replaces all previous circulars and directions issued regarding the DEA Fund since its inception in 2014. Banks must now refer to a single cohesive set of guidelines, eliminating confusion caused by multiple and sometimes conflicting circulars.

Effective Date of Implementation

These updated guidelines are scheduled to come into force starting October 1, 2025. RBI has provided sufficient lead time for banks to review the new requirements, upgrade their internal systems, train staff, and make necessary preparations to ensure smooth compliance from day one.

Important Highlights of the Revised Guidelines for DEA Fund Scheme

The following are the important highlights of the revised guidelines for DEA Fund Scheme:

Registration via e-Kuber

Banks are now mandated to register under the DEA Fund module available on RBI's e-Kuber platform. This step ensures digital tracking and seamless integration of fund transfer and claim processes. Every bank must also provide two active and official email IDs for communication with the RBI.

For banks that do not have direct access to e-Kuber, such as some smaller co-operative banks, registration must be coordinated through sponsor banks. This process is designed to automate workflows and minimize manual intervention, thereby reducing the likelihood of errors and delays.

Appointment of Authorised Signatories

Each bank must designate up to ten authorised signatories for its DEA Fund account. These individuals will be responsible for approving transactions related to fund transfers and claim settlements.

Banks must submit either a Board Resolution or an approval letter from the CEO or Managing Director confirming the appointment. Along with this, the banks need to provide specimen signatures of the authorised personnel. Any changes in the list of signatories must be communicated formally and cannot be partial or informal. This ensures accountability and prevents unauthorized access to sensitive operations.

Monthly Transfers of Unclaimed Funds

Under the new guidelines, banks are required to transfer unclaimed funds to the DEA Fund on a monthly basis. This must be done during the last five working days of each month. The funds to be transferred include all deposit accounts that have been inactive for ten years or more, along with the interest accrued. While uploading these details on e-Kuber, banks must break down the amount into interest-bearing and non-interest-bearing components. This structured schedule promotes transparency and maintains consistent records.

Monthly Refund Claims to RBI

Banks can file refund claims with RBI once every month during the first ten working days of the subsequent month. However, the refund to the customer must be made by the bank first, and only after settling the customer, the bank can claim reimbursement from RBI. Additionally, the bank must ensure proper Know Your Customer (KYC) verification of the claimant before releasing the refund. This structured and verified process helps reduce the risk of fraudulent claims and ensures that only genuine depositors or their legal heirs receive the money.

Reporting and Audit Requirements

The revised DEA Fund guidelines introduce a comprehensive reporting and auditing framework to ensure accuracy and transparency:

• Form I (Monthly Statements): Banks must submit this monthly, detailing the total funds transferred, refunds made, and the remaining balances.

• Form II (Rectification of Errors): Used to report and correct any mistakes made in the monthly entries.

• Form III (Half-Yearly Reconciliation Certificate): Banks must reconcile their internal records with the RBI's records and get the certificate verified by an internal or statutory auditor.

• Annual Audit Certificate: Banks must obtain and submit an annual audit certificate, certified by their statutory auditors, confirming that all operational and financial entries have been accurately maintained.

These strict reporting mechanisms ensure complete oversight and eliminate room for misreporting or negligence.

Replacement of All Previous Instructions

The revised guidelines replace all earlier circulars issued with respect to the DEA Fund Scheme. Banks no longer need to refer to or comply with previously issued fragmented instructions. This unified directive brings much-needed clarity and consistency, making it easier for banks to comply without the confusion of overlapping regulations.

Legal Authority and Issuance

The Reserve Bank of India has issued these new guidelines by exercising its powers under Sections 26A and 35A of the Banking Regulation Act, 1949. The revised guidelines have been officially published under Circular No. RBI/2025-26/62, DoR.SOG(DEA Fund) No.37/30.01.002/2025-26, dated June 25, 2025. This legal backing ensures that the instructions are binding on all banking institutions falling under the scope of the Scheme.

Why the Revision is Important?

The following are the reasons why RBI revises guidelines for DEA Fund Scheme:

Improved Efficiency

By digitizing operations through e-Kuber and limiting fund transfers and claims to specific windows every month, the new guidelines allow banks to standardize their internal processes. This improves efficiency, reduces delays, and minimizes human error.

Better Transparency

The mandatory reporting structure, coupled with monthly activity and statutory audits, creates a clear audit trail and ensures accountability at every step. The system reduces ambiguities and ensures that both banks and RBI have access to accurate and consistent data.

Customer Convenience

The revised guidelines offer a structured way for customers to claim their unclaimed deposits. The RBI has also reiterated that there is no expiry date for such claims, and even deposits transferred to the DEA Fund can be refunded at any time, provided the claimant meets the KYC requirements.

Consolidation of Framework

Bringing all DEA Fund-related instructions under one umbrella allows banks to follow a single set of guidelines. This reduces confusion, simplifies compliance, and facilitates easier training and implementation across bank branches.

Step-by-Step Process for Banks

To comply with the revised guidelines, banks must follow a step-by-step operational protocol:

• Register on RBI's e-Kuber platform and provide two designated official email IDs.

• Appoint up to ten authorised signatories, backed by Board Resolutions or official approval letters, and submit specimen signatures.

• Transfer unclaimed funds during the last five working days of every month, with appropriate breakdowns uploaded in e-Kuber.

• Process customer refunds upon valid KYC and submit reimbursement claims during the first ten working days of the next month.

• Submit Form I (monthly statement), Form II (for corrections), and Form III (half-yearly reconciliation).

• Submit a certified annual audit certificate signed by statutory auditors.

By diligently following these steps, banks can ensure full compliance with RBI's updated DEA Fund framework.

What Customers Should Know

For account holders, the revised guidelines bring encouraging news. If a deposit account has been inactive for over ten years, the funds may have been transferred to the DEA Fund. However, customers or their legal heirs can still claim the money back at any time.

To initiate a claim, the customer must visit the concerned bank branch with proof of identity and complete KYC verification. Once the bank processes the refund, it will claim reimbursement from RBI. This structured and simple claim process benefits depositors by ensuring their funds are not permanently lost.

Impact on Co-operative and Small Banks

While the revised guidelines are equally applicable to all types of banks, urban and rural co-operative banks and other small institutions may need to take additional steps to comply. These banks often lack direct access to RBI's e-Kuber portal and will have to coordinate with their sponsor banks. Although the transition may involve system upgrades and additional training for staff, the long-term benefits include digital tracking, reduced paperwork, and better reporting standards. These reforms aim to bring all banks, regardless of size, under a uniform operational umbrella.

Enforcement Timeline

The RBI issued the revised DEA Fund Scheme guidelines on June 25, 2025. These guidelines will come into effect from October 1, 2025. Banks are advised to use the interim period to:

• Complete e-Kuber registration.

• Appoint authorised signatories.

• Train relevant personnel.

• Set up reporting templates.

• Test digital workflows for monthly cycles.

Proper preparation during this phase is important for a smooth transition and full compliance from the effective date.

Conclusion

The revised guidelines under the DEA Fund Scheme represent a forward-looking step by the RBI towards digital governance, depositor protection, and institutional accountability. By consolidating multiple circulars into one uniform directive and ensuring digital integration through e-Kuber, the RBI aims to bring efficiency, transparency, and reliability to the management of unclaimed deposits. For banks, the framework introduces a clear monthly cycle for fund transfers and claims, while for depositors, it reaffirms that their money remains safe and accessible. The guidelines emphasize responsible banking, operational consistency, and customer-centricity, setting a strong foundation for the future of depositor education and fund awareness in India.

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FAQs

Q1. What is the DEA Fund Scheme introduced by RBI?

Ans. The Depositor Education and Awareness (DEA) Fund Scheme was set up under Section 26A of the Banking Regulation Act, 1949. It is designed to protect the interests of depositors by pooling unclaimed and inoperative deposits lying idle for 10 years or more. Additionally, the fund is used to conduct financial literacy campaigns, research, and outreach programs to educate depositors about their rights and responsibilities.

Q2. Which banks are covered under the revised DEA Fund Scheme guidelines?

Ans. The revised guidelines apply to all types of banks regulated by the RBI. This includes Scheduled Commercial Banks, Regional Rural Banks (RRBs), Urban and Rural Co-operative Banks, Small Finance Banks, Payments Banks, and Local Area Banks. These institutions are now required to follow a unified framework issued by the RBI for handling unclaimed deposits.

Q3. What are banks required to do under the revised DEA Fund guidelines?

Ans. Banks must register on the e-Kuber platform, designate authorised signatories, and start monthly transfers of unclaimed deposits during the last five working days of each month. They must also process monthly refund claims during the first ten working days of the following month, ensure full KYC verification before refunds, and submit prescribed reports and audit certificates to the RBI regularly.

Q4. How can a customer claim their unclaimed deposit transferred to the DEA Fund?

Ans. Customers whose deposit accounts have been inactive for 10 years or more can still claim their money. To do this, they need to visit their bank branch with valid identity proof. After verifying the claim through KYC, the bank will refund the amount and later claim reimbursement from the RBI. There is no time limit for making such refund claims under the revised guidelines.

Q5. What is the significance of e-Kuber in the revised DEA Fund Scheme?

Ans. e-Kuber is the RBI’s core banking solution platform. Under the revised scheme, banks are required to use the DEA Fund module on e-Kuber for registration, fund transfers, and refund claims. This digital integration helps streamline processes, ensures transparency, and reduces manual errors or delays, especially in reconciliation and audit procedures.

Q6. What reporting and audit obligations must banks fulfill?

Ans. Banks must file monthly statements in Form I, report corrections using Form II, and submit a half-yearly reconciliation certificate using Form III. In addition, an annual audit certificate certified by statutory auditors must be submitted to the RBI. These measures are aimed at ensuring proper financial management and compliance with regulatory expectations.

Q7. When will the new DEA Fund Scheme guidelines come into effect?

Ans. The RBI issued the revised guidelines on June 25, 2025. These guidelines will become effective from October 1, 2025. During the transition period, banks are expected to complete e-Kuber registration, appoint signatories, update internal systems, train staff, and prepare for monthly digital fund transfers and reporting cycles.