What changed
The DEAF Scheme, notified on May 24, 2014, mandates banks to transfer cumulative unclaimed balances (including interest) as of May 23, 2014, to the Fund by June 30, 2014. Subsequently, monthly transfers of amounts becoming due (unclaimed for ten years or more) must be made on the last working day of the following month. All remittances must be in electronic form through the E-Kuber portal, using a unique Bank DEAF Code assigned by RBI.
What it means for you
Banks must now systematically identify and transfer unclaimed deposits to the DEAF account, ensuring compliance with Section 26A of the Banking Regulation Act. This reduces the burden of managing long-dormant accounts and enhances depositor protection through a centralized fund. Banks need to integrate their systems with E-Kuber for electronic remittances and maintain detailed breakup of deposits (interest-bearing, non-interest-bearing, other credits) for each transfer.
What you must do
- Calculate cumulative balances (including interest) in all accounts unclaimed for ten years or more as of May 23, 2014, and transfer to DEAF account by June 30, 2014.
- Set up monthly transfers of amounts becoming due (inoperative accounts/unclaimed balances) on the last working day of the subsequent month via E-Kuber portal.
- Obtain and use your unique Bank DEAF Code (from Annex I) for all remittances, ensuring correct code for own or member bank transfers.
- Provide detailed breakup (number of accounts and amount) for interest-bearing, non-interest-bearing, and other credits in the DEAF Service portal fields.
- Prepare audited returns as per paragraph 5 of the Scheme for submission to 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
What is the deadline for the initial transfer under the DEAF Scheme?
Banks must transfer the cumulative unclaimed balances as of May 23, 2014, to the DEAF account by June 30, 2014, before close of banking hours.
How should banks remit amounts to the DEAF account?
All remittances must be made electronically through the E-Kuber portal using the 'DEAF Service' facility, crediting the designated account 'DEAF Account 161001006009' with RBI.
What details must banks provide when transferring funds to DEAF?
Banks must furnish their unique Bank DEAF Code and a detailed breakup of deposits including number of accounts and amounts for interest-bearing, non-interest-bearing, and other credits.