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Supreme Court Presses Centre, RBI on Disclosing Deceased Depositors’ Details to Heirs

The bench set a four-week affidavit deadline ahead of a May 5 hearing.

Overview

  • A two-judge bench of Justices Vikram Nath and Sandeep Mehta questioned why details of dormant accounts of dead persons cannot be shared with legal heirs.
  • The case stems from a 2022 PIL by journalist Sucheta Dalal seeking a centralized, searchable registry covering banks, securities, insurance and post office accounts.
  • Government counsel cited privacy and fraud risks in putting such information in the public domain, pointing to refunds from the Depositor Education and Awareness Fund for verified heirs.
  • RBI’s counsel noted the existence of a Central KYC system and said banks act as trustees and can require indemnity bonds when not satisfied with a claimant.
  • The petition highlights the scale of unclaimed balances, including growth in IEPF amounts, as it argues that lack of accessible data prevents rightful claims.