The Reserve Bank of India (RBI) on Tuesday unveiled a year-long incentive scheme to encourage banks to reduce the volume of unclaimed deposits. Titled the 'Scheme for Facilitating Accelerated Payout of Inoperative Accounts and Unclaimed Deposits,' the programme will reward banks with differential payouts based on how long an account has remained inoperative and the size of deposits in it.
According to the RBI, the scheme is designed to cut down both the stock of existing unclaimed deposits and the inflow of fresh amounts into the Depositors' Education and Awareness Fund. The central bank said the initiative seeks to encourage banks to proactively engage with customers and depositors for reactivating dormant accounts and ensuring timely return of unclaimed amounts from the DEA Fund to rightful claimants.
Currently, deposits lying idle for over 10 years are transferred to the DEA Fund, though depositors or their heirs can reclaim the money later. As of June this year, unclaimed deposits exceeded Rs 67,000 crore.
The RBI has also launched a dedicated portal, UDGAM, to make it easier for depositors to search for and access unclaimed deposits.
The incentive scheme will run from Oct. 1 to Sept. 30. Under it, banks will receive 5% of the amount or Rs 5,000 (whichever is lower) for accounts inoperative for up to four years. For accounts inoperative for over 10 years, the incentive rises to 7.5% of the amount or Rs 25,000 (whichever is lower).
Banks must submit claims for these payouts quarterly, within one month of each quarter's end, in the prescribed format. Each claim will need to be signed by a senior executive designated by the bank's top management.
(With inputs from PTI).
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