RBI issues guidelines to trace customers with inoperative accounts

The Reserve Bank of India RBI issued comprehensive guidelines on the measures to be put in place by the banks covering various aspects of classifying accounts and deposits as inoperative accounts and unclaimed depositsThe central bank called for steps to trace the customers of inoperative accounts or unclaimed deposits including their nominees or legal heirs for reactivation of accounts settlement of claims or closureRBI also stressed a periodic review of such accounts and deposits measures to prevent fraud in such accounts or deposits and grievance redressal mechanisms for expeditious resolution of complaintsThese instructions are expected to complement the ongoing efforts and initiatives taken by banks and the RBI to reduce the quantum of unclaimed deposits in the banking system and return such deposits to their rightful owners or claimantsAccording to rules the credit balance in any deposit account maintained with banks which has not been operated upon for ten years or more or any amount remaining unclaimed for ten years or more is required to be transferred by banks to Depositor Education and Awareness DEA fund maintained by the central bank RBIThis latest circular applies to all commercial banks including regional rural banks and all cooperative banksThe revised instructions shall come into effect from April 1 2024In August last year RBI launched a Centralised Web Portal UDGAM Unclaimed Deposits Gateway to Access information for the public to facilitate and make it easier for them to search their unclaimed deposits across multiple banks at one placeGiven the increasing trend in the number of unclaimed deposits RBI had then said it has been undertaking public awareness campaigns from time to time to sensitise the public on the matterFurther through these initiatives the RBI maintains it has been encouraging members of the public to identify and approach their respective banks for claiming unclaimed depositsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever