RBI awareness campaign on unclaimed deposits

The Reserve Bank has launched a national campaign with a focus on the eight states that have the maximum amount of unclaimed deposits. Accordingly, the monetary authority has launched a campaign in the languages of these eight states along with Hindi and English.

The unclaimed deposits in banks have sharply jumped to Rs 48,262 crore in FY22 from Rs 39,264 crore in the preceding fiscal, according to the annual report of the central bank.

Most of these funds are lying with banks across Tamil Nadu, Punjab, Gujarat, Maharashtra, Bengal, Karnataka, Bihar and Telangana/Andhra Pradesh, according to an RBI official.

Accordingly, the monetary authority has launched a campaign in the languages of these eight states along with Hindi and English.

According to RBI norms, balances in savings/current accounts that are not operated for 10 years, or term deposits not claimed within 10 years from the date of maturity, are classified as “unclaimed deposits”. After this, banks transfer such money to the ‘depositor education and awareness fund’ maintained by the Reserve Bank of India (RBI).

The depositors are, however, still entitled to claim their money at a later date from the bank along with applicable interest. However, despite public awareness campaigns undertaken by banks, as well as the RBI, from time to time, the amount of unclaimed deposits is showing an increasing trend, the central bank said.

The volume of unclaimed deposits arises mainly due to non-closure of savings/ current accounts, which depositors do not intend to operate anymore or due to not submitting redemption claims with banks for matured fixed deposits. There are also cases of accounts belonging to deceased depositors, where the nominees/legal heirs do not come forward to take the money back.

The campaign aims to help such depositors or the nominees/legal heirs of the deceased depositors identify and claim the deposits, the central bank said.

(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Harry Byrne

Related post