Indian Banks get ₹5,729 Crore from DEA Fund to refunds Unclaimed Deposit : Karad

Latest Banks Updates: In a significant move, Indian banks have obtained ₹5,729 crore from the "Depositor Education and Awareness" (DEA) Fund to facilitate the refund of unclaimed deposits, as announced by Union Minister of State for Finance, Bhagwat Kisanrao Karad. The scheme, initiated by the Reserve Bank of India (RBI) in 2014, outlines regulations governing unclaimed deposits and outlines the fund's role in safeguarding depositors' interests and supporting specified purposes.

Over the past five years, combined efforts to reunite unclaimed deposits with their rightful owners have led to the transfer of ₹5,729 crore from the DEA Fund to various banks. Minister Karad elaborated on the measures undertaken by RBI to effectively reduce the number of unclaimed deposits and ensure their rightful restitution. These measures include the public display of lists featuring inactive or inoperative unclaimed deposits, diligent tracking of customers and their legal heirs, and setting up efficient grievance redressal mechanisms.

To further streamline the process, banks are required to create board-approved policies for unclaimed deposit classification and maintain proper records, with periodic reviews of such accounts. Additionally, RBI has announced plans to establish a centralized web portal allowing the public to search for unclaimed deposits across multiple banks.

Furthermore, RBI has launched the "100 Days 100 Pays" campaign, aimed at tracing and settling the top 100 unclaimed deposits of each bank in every district of the country within 100 days, starting from September 1st to September 8th, 2023. This initiative reflects the government's commitment to reuniting unclaimed funds with their rightful owners, enhancing transparency and accountability in the banking sector.