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Economy
Mahesh

04/06/23 09:20 AM IST

RBI launches ‘100 Days 100 Pays’ campaign to return unclaimed deposits

In News
  • The Reserve Bank of India (RBI) on June 1 launched a ‘100 Days 100 Pays’ campaign to trace and settle the top 100 unclaimed deposits of every bank in every district within 100 days.
About the campaign
  • As of February end, the total amount of so-called unclaimed deposits, which are accounts that have not been operated for 10 years or more, transferred to the RBI by state-run banks was Rs 35,012 crore, the central bank said earlier.
  • The banking regulator’s ‘100 Days 100 Pays’ campaign will complement its efforts to cut the quantum of unclaimed deposits in the banking system and return such deposits to their rightful owners/claimants.
  • In order to improve and widen the access of depositors/beneficiaries to such data, RBI has decided to develop a web portal to enable search across multiple banks for possible unclaimed deposits based on user inputs.
Unclaimed deposits
  • Unclaimed deposits refer to funds that have remained untouched or inactive for a period of ten years or longer.
  • When such deposits exhibit no activity, banks transfer the funds to the “Depositor Education and Awareness” (DEA) Fund, which is maintained by the RBI.
  • However, depositors retain the right to claim their deposits, along with applicable interest, from the bank(s) where these deposits were held, even after they have been transferred to the DEA Fund.
  • The accumulation of unclaimed deposits primarily occurs due to several reasons.
  • One common reason is the non-closure of savings or current accounts that depositors no longer intend to operate.
  • Additionally, depositors may fail to submit redemption claims for matured fixed deposits, leading to the transfer of funds to the DEA Fund.
  • There are also instances where deposits belong to deceased individuals, and their nominees or legal heirs do not come forward to make a claim on the respective bank(s).
Source- Hindustan Times

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