The amount of unclaimed deposits is on the rise despite repeated public awareness campaigns undertaken by the Reserve Bank of India (RBI) and the banks.
RBI is now encouraging people who have not claimed their deposits to reach out to the respective banks for such deposits. Unclaimed deposits are on the rise mainly due to non-closure of savings / current accounts which depositors do not intend to operate anymore; due to not submitting redemption claims with banks for matured fixed deposits; or nominees/ legal heirs of deceased depositors do not come forward to make a claim.
RBI defines unclaimed deposits as balance in savings, current accounts, or term deposits which are not claimed for within ten years from date of maturity. These amounts are transferred by banks to “Depositor Education and Awareness” (DEA) Fund maintained by RBI.
“… banks already host the list of Unclaimed Deposits on their website with some identifiable details. Members of the public are encouraged to identify and approach the bank concerned for claiming such deposits”, RBI said.