What changed
RBI observed that banks were not proactive enough in tracing customers of unclaimed deposits despite earlier instructions. Now, banks must have a Board-approved policy covering classification, grievance redressal, record keeping, and periodic review of such accounts. The first periodic review must be submitted to the bank's Board by September 30, 2012.
What it means for you
Banks must formalize their approach to unclaimed deposits, moving from ad-hoc handling to a structured, Board-overseen framework. This increases compliance burden but reduces regulatory risk and improves customer trust. Lenders need to allocate resources for KYC due diligence and website updates to meet the June 30 deadline.
What you must do
- Display list of accounts inactive for 10+ years on your bank's website by June 30, 2012, showing only name and address.
- Develop and get Board approval for a policy on classification, grievance redressal, record keeping, and periodic review of unclaimed deposits.
- Submit the first periodic review of unclaimed deposits/inoperative accounts to the Board by September 30, 2012.
- Strengthen KYC due diligence and proactive customer tracing efforts for inoperative accounts.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Bank Boards and senior management, Compliance and KYC teams, Customer service and grievance redressal departments
What is the deadline for displaying unclaimed deposits on the bank's website?
Banks must display the list of accounts inactive for ten years or more on their websites by June 30, 2012.
What must be included in the Board-approved policy for unclaimed deposits?
The policy must cover classification of unclaimed deposits, a grievance redressal mechanism, record keeping, and periodic review of such accounts.
When is the first periodic review of unclaimed deposits due to the Board?
The first periodic review must be submitted to the bank's Board by September 30, 2012.