Circular No.RBI/2023-24/105 DOR.SOG (LEG).REC/64/09.08.024/2023-24, Dated 01.01.2024
The Reserve Bank of India (RBI) has issued comprehensive guidelines on the measures to be put in place by the banks covering various aspects of classifying accounts and deposits as inoperative accounts and unclaimed deposits.
The central banks called for steps to trace the customers of inoperative accounts or unclaimed deposits including their nominees or legal heirs for re-activation of accounts, settlement of claims or closure.
Also, the RBI stressed a periodic review of such accounts and deposits, measures to prevent fraud in such accounts or deposits, and grievance redressal mechanisms for expeditious resolution of complaints.
As per the extant instructions, 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, as mentioned in paragraph 3(iii) of the “Depositor Education and Awareness” (DEA) Fund Scheme, 2014, are required to be transferred by banks to DEA Fund maintained by the Reserve Bank of India.
RBI has directed banks to contact the holder(s) of the inoperative account/ unclaimed deposit through letters, email or SMS (if the email and mobile number are registered with the bank). The email/ SMS shall be sent every quarter.
As per Central Banks Circular, the banks shall have to undertake special drives periodically to find out the whereabouts of the customers, their nominees or legal heirs in respect of inoperative accounts/unclaimed deposits.
RBI directed the banks to ensure that amounts lying in inoperative accounts/unclaimed deposits and reactivated inoperative accounts/unclaimed deposits, are subjected to concurrent audit.
The RBI has further instructed banks that no charges must be levied for the re-activation of inoperative accounts. Concerning the interest on savings accounts, the RBI has clearly instructed that Interest on savings accounts shall be credited regularly irrespective of the fact that the account is in operation or not. The revised instructions shall come into effect from April 1, 2024.
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