New Delhi, May 26 -- A banking account, when left unused for 10 years or more, is designated as an 'unclaimed deposit' under Reserve Bank of India (RBI) rules. All such funds are transferred by banking institutions to the Depositor Education and Awareness Fund (DEAF) maintained by the RBI.

Furthermore, the funds in such cases do not disappear or become government property. The account holder or the legal heir can still claim the funds in the account at any time by following several basic steps.

In India, savings and current accounts become 'inoperative' after two years without customer-initiated transactions. If the account stays inactive for 10 years, the balance is transferred to the RBI's DEAF fund. Similarly, fixed deposits that rem...