RBI has released important notice for people who have not used their bank account for 10 years
On January 1, the Reserve Bank of India (RBI) issued comprehensive guidelines to banks regarding unclaimed deposits, emphasizing the need for periodic reviews to address inactivity and prevent fraud.
Unclaimed Deposits:
An unclaimed deposit pertains to an account with no financial activity, such as fund infusion or withdrawals, from the depositor for a period exceeding 10 years, rendering it inactive.
Preventive Measures and Grievance Redressal:
The RBI directive mandates banks to implement preventive measures against fraud in accounts with unclaimed deposits. Additionally, banks are instructed to establish an efficient grievance redressal mechanism for swift complaint resolution.
Steps for Customer Tracing:
Banks are directed to take proactive steps to trace customers of inoperative accounts or unclaimed deposits, including nominees and legal heirs. The process should facilitate reactivation of accounts, settlement of claims, or closure, with clear guidelines outlined in the directive.
Complementing Ongoing Efforts:
The central bank emphasized that these instructions are intended to complement the ongoing initiatives by banks to reduce the volume of unclaimed deposits within the banking system. The ultimate goal is to facilitate the return of such deposits to their rightful owners or claimants.
Applicability and Scope:
The guidelines issued by the RBI are applicable to commercial banks, including regional rural banks, and all cooperative banks, creating a uniform framework for compliance.
Introduction of UDGAM Portal:
In August 2023, the RBI launched the UDGAM portal, providing a centralized platform for individuals to track all their unclaimed deposits across different banks. This initiative streamlined the process, eliminating the need for depositors to search individually on each bank’s website.
‘100 Days 100 Pays’ Campaign:
In May 2023, the central bank introduced the ‘100 Days 100 Pays’ campaign, urging banks to trace and settle the top 100 unclaimed deposits of every bank in each district within a 100-day timeframe. This initiative aligns with the RBI’s broader efforts to address unclaimed deposits and ensure their rightful return.
Conclusion:
The RBI’s guidelines reflect a proactive approach to managing unclaimed deposits, emphasizing transparency, preventive measures, and efficient mechanisms for customer tracing and complaint resolution. These measures are integral to the ongoing endeavors aimed at reducing the quantum of unclaimed deposits in the banking system.
