OTHER GROUP COMPANIES
market

RBI: Banks to frame policies to refund unclaimed deposits

According to the estimates, Rs. 17.23 billion in 10.3 million non-operational accounts was unclaimed in various banks as of December 2010

June 07, 2012 3:18 IST | India Infoline News Service
On 6th June, Reserve Bank of India (RBI) has asked banks to find the whereabouts customers and their legal heirs to refund unclaimed deposits which are estimated to be Rs. 17 billion.
The framework to be set up by each bank should have provision for quick resolution of complaints, record keeping and periodic review of accounts with respect to unclaimed accounts, RBI said in a circular.
According to the estimates, Rs. 17.23 billion in 10.3 million non-operational accounts was unclaimed in various banks as of December 2010. About Rs. 14.67 billion of this is with public sector banks while the rest remains with private and foreign banks.
"...With a view to further strengthen the regulatory framework for inoperative accounts and unclaimed deposits, banks are advised to put in place a Board approved policy on classification of unclaimed deposits, grievance redressal mechanism for quick resolution of complaints, record keeping, and periodic review of such accounts," RBI said in a notification.
The RBI said despite its directive to banks on annual review of inoperative accounts, re-opening of these accounts and non-levy on any charge for activation of these accounts, banks have been not been pro-active in tracing customers with unclaimed accounts.
In February, the RBI had also asked banks to display list of unclaimed deposits accounts which are inactive for 10 years or more on their respective websites by June 30, 2012. The list so displayed on the websites must contain only the name of the account holder and the address.
The RBI also asked the banks that the first periodic review of unclaimed deposits or inoperative accounts should be put up to their respective bank boards by September 30, 2012.

Invest wise with Expert advice

FEATURED ARTICLE

BLOGS

Open Demat Account

Invest wise with Expert advice

By continuing, I accept the Terms & Conditions and agree to receive updates on Whatsapp