RBI pushes for return of unclaimed bank deposits

The Reserve Bank of India (RBI) has asked all banks to beef up settlements of unclaimed funds — deposits, dividends, interest warrants, pensions, etc — over the next three months (October to December) to reduce such funds in the banking system.

- MANOJIT SAHA

Balances in savings or current accounts that have not been operated for 10 years, or term deposits not claimed within 10 years from the date of maturity, are classified as 'unclaimed deposits'. These amounts are transferred by banks to the Depositor Education and Awareness Fund maintained by the RBI. Depositors, however, are still entitled to claim the deposits at a later date from the banks where they were held, along with applicable interest.

In a communication to banks, the regulator said that in a recent meeting of the Financial Stability and Development Council, it was decided to hold district-level, week-long joint camps to settle unclaimed funds. The first camp is scheduled for the first week of October in Gujarat, and more such camps will be held across the country until December.