RBI: Unclaimed bank money to be used for depositors' education
The Reserve Bank of India (RBI) has decided to utilize unclaimed bank deposits that are estimated at Rs. 3,650 crore for education and awareness of depositors. The apex bank has announced the ‘Depositor Education and Awareness Fund Scheme, 2014’ for this purpose.
What are unclaimed bank deposits that to be credited for fund?
- The amounts to be credited to the Fund shall be the credit balance in any deposit account maintained with banks which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more.
- Deposit accounts viz. savings bank deposit accounts, fixed or term deposit accounts, recurring deposit accounts and current deposit accounts.
- Any amount payable in foreign currency under an instrument or a transaction that has remained unclaimed for 10 years or more.
- In case of demand from a customer or depositor whose unclaimed amount/deposit had been transferred to the fund, “banks shall repay the customer/depositor, along with interest if applicable”.
Note: RBI stated that the fund would be utilized for promotion of depositors’ interest by imparting necessary education and awareness about the banking sector.