The Reserve Bank of India (RBI) has introduced extensive guidelines outlining measures to be implemented by banks concerning the classification of accounts and deposits as inoperative or unclaimed. The central bank’s directives emphasize the necessity for banks to take proactive steps in tracing customers of such accounts or deposits, including their nominees or legal heirs, for actions like reactivation, claims settlement, or closure.
RBI’s guidelines further stress the importance of periodic reviews of inoperative accounts and unclaimed deposits, implementing measures to prevent fraud, and establishing efficient grievance redressal mechanisms for prompt complaint resolution. These instructions are designed to complement ongoing efforts by banks and the RBI to reduce the volume of unclaimed deposits in the banking system and ensure their rightful return to owners or claimants.
As per the regulations, any deposit account with no activity for ten years or more, or any unclaimed amount for a similar duration, must be transferred by banks to the Depositor Education and Awareness (DEA) fund maintained by the RBI. Applicable to all commercial banks, including regional rural banks, and cooperative banks, this latest circular aims to enhance the management and resolution of inoperative accounts and unclaimed deposits across the banking sector.