Unclaimed deposits on the rise, RBI starts a campaign to raise awareness

27 Jul 2022 , 09:36 AM

The eight states with the most unclaimed deposits have been the focus of a national effort by the Reserve Bank. As a result, the monetary authority has started a campaign in Hindi, English, and the languages of these eight states.

According to the central bank’s annual report, the number of unclaimed deposits in banks has drastically increased to Rs48,262 crore in FY22 from Rs39,264 crore in the previous fiscal.

According to an RBI official, the majority of this money is held by banks in Tamil Nadu, Punjab, Gujarat, Maharashtra, Bengal, Karnataka, Bihar, and Telangana/Andhra Pradesh.

As a result, the monetary authority has started a campaign in Hindi, English, and the languages of these eight states.

According to RBI regulations, funds in savings/current accounts that have not been used for 10 years or funds in term deposits that have not been repaid within 10 years of the maturity date are referred to as “unclaimed deposits.” Following that, banks transfer this money to the Reserve Bank of India’s “depositor education and awareness fund” (RBI).

However, the depositors are still qualified to obtain their funds from the bank later on, along with any appropriate interest. However, despite occasional public awareness initiatives launched by banks and the RBI, the volume of unclaimed deposits is showing an upward trend, according to the central bank.

The campaign’s goal, according to the central bank, is to make it easier for such depositors–or the nominees or legal heirs of deceased depositors–to locate and retrieve their accounts.