The Reserve Bank on Tuesday announced a year-long incentive scheme for banks to reduce the volume of unclaimed deposits.
Under the ‘Scheme for Facilitating Accelerated Payout’ Inoperative Accounts and Unclaimed Deposits’, banks will be eligible to get a differential payout depending on the period of an account remaining inoperative and the amount of deposits in it.
“The scheme aims to reduce both the stock of existing unclaimed deposits and fresh accretion of flows to the DEA Fund,” an official communique from the central bank said.
“The objective (of the scheme) is to encourage banks to actively pursue customers/ depositors for re-activation of their inoperative accounts and return of their unclaimed amounts lying with Depositors Education Awareness (DEA) Fund to the rightful claimant in a timely and efficient manner,” the central bank said.
Unclaimed money in accounts which are inoperative for more than 10 years goes into the depositor education and awareness (DEA) fund, but a ..
