What changed
RBI observed that banks were not proactive in tracing customers of unclaimed deposits despite earlier instructions. Now, banks must formalize a Board-approved policy covering classification, grievance redressal, record keeping, and periodic review of such accounts. The first periodic review must be presented to the Board by September 30, 2012.
What it means for you
Banks can no longer treat unclaimed deposits passively; they need a structured, Board-approved framework. This increases compliance burden but also reduces legal and reputational risks. It also aligns with KYC norms, helping banks clean up their books and improve customer trust.
What you must do
- Draft and get Board approval for a policy on classification, grievance redressal, record keeping, and periodic review of unclaimed deposits.
- Ensure the first periodic review of unclaimed deposits is submitted to the Board by September 30, 2012.
- Display on your website the list of accounts inactive for ten years or more (names and addresses only) by June 30, 2012, if not already done.
- Strengthen efforts to trace customers and legal heirs of unclaimed deposits, as per earlier circulars.
Who it affects
State and Central Co-operative Banks, Regional Rural Banks, Bank Boards and senior management, Compliance and operations teams
What is the deadline for the first Board review of unclaimed deposits?
The first periodic review must be submitted to the bank's Board by September 30, 2012.
Do we need to display unclaimed deposit lists on our website?
Yes, as per the February 8, 2012 circular, banks must display on their website the list of accounts inactive for ten years or more, showing only names and addresses, by June 30, 2012.