Banks to allot different product code to dormant a/cs: RBI

State and Central Governments have expressed difficulties in crediting bank accounts that had been classified as inoperative, RBI says

September 18, 2013 11:48 IST | India Infoline News Service
The Reserve Bank of India has advised banks to allot a different product code in their core banking solution to accounts that were dormant or inoperative for over two years as central and state governments were facing difficulties to transfer social benefits in such accounts.

State and Central Governments have expressed difficulties in crediting cheques/Direct Benefit Transfer/Electronic Benefit Transfer/Scholarships for students, Zero Balance Accounts, etc. into accounts opened for the beneficiaries under various Central/State Government schemes but had been classified as dormant/inoperative due to non-operation of the account for over two years, the RBI said in a notification on Tuesday.

Banks are advised that they may allot a different “product code” in their CBS to all such accounts opened by banks so that the stipulation of inoperative/dormant account due to non-operation does not apply while crediting proceeds, it added.

To reduce the risk of fraud etc., in such accounts, while allowing operations in these accounts, due diligence should be exercised by ensuring the genuineness of transactions, verification of signature and identity, etc. However, it has to be ensured that the customer is not inconvenienced in any manner, RBI further said.

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