What changed
RBI has finalized the Depositor Education and Awareness Fund Scheme 2014 under Section 26A of the Banking Regulation Act, 1949. Banks must credit all accounts inoperative for 10 years or unclaimed deposits to the Fund within 3 months after that period. The scheme will take effect upon notification in the Official Gazette, with operational guidelines to follow.
What it means for you
Banks must identify and transfer long-dormant deposits to the Fund, but they remain responsible for honoring depositor claims and can reclaim paid amounts from the Fund. This shifts administrative burden but ensures depositor protection. Banks need to update systems and processes to comply with the timeline and reporting requirements.
What you must do
- Identify all accounts and deposits unclaimed for over 10 years and prepare for transfer to the Fund within 3 months of the 10-year expiry.
- Designate a single contact officer and alternate officer for Fund-related queries, and email their details to RBI as per the annex.
- Update internal systems to track and report unclaimed deposits accurately, and ensure depositor claims can be processed even after transfer.
- Monitor the Official Gazette for the scheme's notification date and await operational guidelines from RBI.
Who it affects
All scheduled commercial banks including RRBs and LABs, Urban co-operative banks, State co-operative banks, District central co-operative banks
Can depositors still claim their money after it is transferred to the Fund?
Yes, depositors can claim their deposit or unclaimed amount from the bank even after transfer. The bank must pay the depositor and then claim a refund from the Fund.
When does the scheme become effective?
The scheme will be effective from the date it is notified in the Official Gazette. RBI will issue operational guidelines separately after notification.
What is the purpose of the Fund?
The Fund is used to promote depositors' interests and for other purposes specified by RBI from time to time, as per Section 26A of the Banking Regulation Act.