What changed
RBI provided clarifications on the operational guidelines for the Depositor Education and Awareness Fund (DEAF) Scheme, 2014. It specified that banks must use the E-Kuber portal's 'DEAF Service' menu to remit amounts due, with separate fields for interest-bearing, non-interest-bearing, and other credits. The circular also clarified that interest on claims from the Fund accrues only from the date of transfer to the Fund until payment, and only for interest-bearing deposits.
What it means for you
Banks must ensure accurate classification and timely transfer of unclaimed deposits to the DEAF Fund via E-Kuber. The interest calculation for claims is now clearly defined, reducing ambiguity. This impacts how banks handle inoperative accounts and unclaimed balances, requiring strict adherence to monthly transfer deadlines.
What you must do
- Remit unclaimed deposit amounts (including accrued interest) to the DEAF Account via E-Kuber portal by the last working day of each month.
- Correctly classify deposits in E-Kuber fields: interest-bearing, non-interest-bearing, and others (non-interest bearing).
- Calculate and credit accrued interest on interest-bearing deposits up to the date of transfer to the Fund.
- Ensure the initial transfer of cumulative balances (as of May 22, 2014) is completed by June 30, 2014.
Who it affects
All Scheduled Commercial Banks including RRBs and LABs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks
When must banks transfer unclaimed deposits to the DEAF Fund?
Banks must transfer amounts due each calendar month by the last working day of that month, within banking hours, using the E-Kuber portal.
How is interest calculated on claims from the DEAF Fund?
Interest on claims accrues only from the date the deposit was transferred to the Fund until the date of payment to the customer, and only for interest-bearing deposits. No interest is payable on non-interest-bearing amounts.
What should banks do for the initial transfer due on June 30, 2014?
Banks must calculate cumulative balances in all accounts along with accrued interest as of May 22, 2014, and transfer the entire amount (including accrued interest) to the Fund by June 30, 2014.