- Date : 17/05/2023
- Read: 3 mins
RBI's new initiative is aimed at reducing unclaimed deposit in the banking system. If you think you have some unclaimed deposits, have a look at this post and understand how to claim that.
Every year, thousands of people die without leaving any nominees for their bank accounts, or thousands of people forget that they have some money deposited in a bank account. In such cases, the RBI intervenes and takes over all such accounts and the money accumulated in them.
If you are unaware of unclaimed deposits or what banks do with such unclaimed amounts, this is the right article for you. As we go ahead, we will understand what an unclaimed deposit is and how banks handle them for public welfare and ease.
Any deposit which is left untouched for ten years becomes an unclaimed deposit. By untouched, we mean that there are no sort of transactions happening on the deposit/account. If you either deposit or withdraw even one rupee from an account over the span of 10 years or longer, your account is considered active, and it cannot be moved to an unclaimed deposit state. Most accounts that move to the unclaimed deposit state are often accounts of people who have died without any nominees to pass on the account or people who have long forgotten that they even have an account.
Having known about unclaimed deposits, now let’s understand what happens to such amounts.
When any account is marked as an unclaimed deposit, the amount in that account is directly transferred to the Depositor Education and Awareness fund, which is administered by RBI. The money in this account comes from all the different banks in the country.
All Indian banks have to keep a check on unclaimed deposit accounts, and they have to transfer the amount to the DEA fund within three months of passing the 10-year mark. Moreover, the banks also have to transfer all the interest that accrued on the deposit during the previous years since the account was dormant.
The RBI manages this fund and provides interest in it. Whenever someone claims the amount with proper records, they are liable to receive the payments from the bank.
In the last few years, there has been a tremendous increase in the number of unclaimed deposits in the Indian banking system. It is a concerning issue for RBI. Hence, they are taking significant steps to reduce such deposits in the future. One of the measures is to ask for a nominee in all deposits so that the amount can be passed to the rightful person upon any unfortunate event.
Recently RBI has also come up with a new initiative named 100 Days 100 Pays. Under this new initiative, RBI has directed all banks to settle the top 100 unclaimed accounts in each district within the next 100 days. Anyone who can provide good supporting documents for their claimed deposits is liable to get the money back. With this campaign, RBI is aiming to reduce as many unclaimed deposits in the Indian banking system as possible and educate depositors on keeping their funds secure.
If someone you know has left an unclaimed deposit, and you can prove your relationship with them, this is a great initiative to get your money back from banks. Head over to your bank or RBI's website to find more details on this initiative.