Why heirs of dead depositors can’t be told about unclaimed funds, SC asks govt.

The Supreme Court on Tuesday (March 17, 2026) asked the Centre and the Reserve Bank of India to explain why unclaimed funds lying dormant in the bank accounts of dead persons cannot be disclosed to their heirs.

A Bench of Justices Vikram Nath and Sandeep Mehta parried the submission made by the government that the question was in the realm of policy.

”Suppose a man has got 10 different accounts in different countries, he dies intestate, how do his heirs get the details? He may not have done the KYC. It is not a question of policy. What is wrong if information is given to the legal heirs? You will have to come out with some policy,” the Bench observed.

The court was hearing a petition filed by journalist Sucheta Dalal to ensure that information on money held by investors and depositors in dormant or inoperative accounts be made publicly available on a centralised platform.

Prashant Bhushan, appearing for the petitioner, said the RBI had also recommended the need to have a centralised and searchable database so that people could trace the accounts of their deceased parents.

Additional Solicitor General N. Venkataraman, appearing for the Centre, said if a genuine heir came forward, the amount was refunded to them from the Depositor Education and Awareness Fund. The Depositor Education and Awareness Fund, established by the RBI in 2014, holds unclaimed deposits from commercial and co-operative banks.

The top court asked the Centre and the RBI to file fresh affidavits in the matter and posted the matter for hearing on May 5.