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Balaji and Vijayalakshmi catch up over dinner and an interesting conversation unfolds:
Vijayalakshmi: Destiny has played a cruel joke on me. Yesterday, during the usual clearing up, I discovered an FD certificate for ₹15 lakh in a PSU bank; apparently my grandfather made this deposit a few months before he passed away. We had no inkling of it and now it has been 10 years since we operated that account. Most likely our proceeds have been transferred to the Depositor Education and Awareness (DEA) fund.
Balaji: You are quite lucky to find out now. Have you heard about the “100 days,100 pays” campaign by RBI? This campaign starts from June 1, wherein RBI has asked banks to identify and settle the top 100 unclaimed deposits of every bank in every district of the country within 100 days. This is a step to reduce the quantum of unclaimed deposits.
Vijayalakshmi: But why has RBI launched this campaign now?
Balaji: The Reserve Bank, from time to time, through its public awareness initiatives, has been encouraging members of public to identify and approach the banks concerned for claiming such deposits. The campaign is a step forward in that direction. According to RBI, ₹35,000 crore of unclaimed deposits was lying with banks at the end of February 2023.
Vijayalakshmi: That’s not a small number.But once this money is transferred to DEA fund, is there a way to get it back?
Balaji: Yes, it is definitely possible to get the money back from DEA fund. Depositors or their heirs need to make the request in the prescribed form along with the deposit receipt/passbook, valid identity proof of the claimant and death certificate, in case of death of depositor. RBI rules mandate that the banks will pay interest to the depositor on the principal transferred to the DEA fund from the date of transfer to the fund, the interest rate to be paid would be the rate specified by RBI. The deposits that were not interest-bearing originally will not be eligible for any interest. RBI is also working on a common web portal where unclaimed deposits across banks can be checked.
Vijayalakshmi: Oh, the process seems quite clear-cut but in case there is no nomination, the legal heirs may have to go through a rather lengthy process.
Balaji: Yes, assigning a nominee while making a deposit is always helpful. It reduces the paperwork and the disbursal can be quicker.
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