In an effort to safeguard the interests of depositors and ensure the rightful return of unclaimed deposits, the Reserve Bank of India (RBI) has taken significant steps. The “Depositor Education and Awareness” (DEA) Fund plays a crucial role in supporting these initiatives. With an allocation of ₹5,729 crore from the DEA Fund, RBI has implemented various measures to reduce the quantum of unclaimed deposits and expedites their return to rightful claimants.
Unclaimed Deposits and the DEA Fund
Unclaimed deposits refer to funds that have remained untouched in bank accounts for an extended period without any activity or transactions by the account holders. To address the issue of unclaimed deposits, RBI established the Depositor Education and Awareness Fund (DEA Fund) under Section 26A of the Banking Regulation Act, 1949. The DEA Fund aims to promote depositors’ awareness and protect their interests.
RBI’s Initiatives to Reduce Unclaimed Deposits
RBI has undertaken various measures to tackle the problem of unclaimed deposits and enhance the process of their return to the rightful claimants:
- Displaying Inactive/Inoperative Deposits: RBI instructed banks to display a list of inactive and inoperative unclaimed deposits on their websites. These deposits, which are ten years or older, are included in the list to make it easier for account holders or their legal heirs to identify and claim them.
- Locating Customers and Legal Heirs: RBI has made efforts to locate the customers and their legal heirs associated with unclaimed deposits. By reaching out to them, the RBI ensures that rightful claimants receive the unclaimed deposits.
- Policy: RBI mandated banks to implement a board-approved policy on the classification of unclaimed deposits. This policy ensures clarity and consistency in dealing with unclaimed deposits.
- Grievance Redressal Mechanism: RBI established a grievance redressal mechanism to address complaints related to unclaimed deposits effectively. Proper record-keeping and periodic review of unclaimed deposit accounts is also part of this mechanism.
- Centralized Web Portal: To streamline the process of locating and claiming unclaimed deposits, RBI is set to launch a centralized web portal. This initiative will enable the public to search for unclaimed deposits across multiple banks, promoting transparency and efficiency.
The “100 Days 100 Pays” Campaign
In a bid to expedite the settlement of unclaimed deposits, RBI launched the “100 Days 100 Pays” campaign. This ambitious campaign aims to trace and settle the top 100 unclaimed deposits of each bank in every district of the country within 100 days. The campaign, scheduled from June 1, 2023, to September 8, 2023, reflects RBI’s commitment to returning unclaimed deposits to their rightful owners promptly.
Widening and Deepening Depositor Awareness Efforts
The DEA Fund plays a vital role in widening and deepening depositor awareness efforts. It empowers RBI to establish and support institutions dedicated to promoting depositors’ awareness. With a renewed focus on this aspect, RBI has decided to invite applications ‘on tap’ for the registration of eligible entities. This move is expected to strengthen the network of entities working towards depositors’ education and awareness.