Once the claim is verified by the bank, the funds will be released to the nominee.
The Reserve Bank of India (RBI) has instructed banks to identify accounts that have not had any customer-initiated transactions for a duration exceeding ten years. In accordance with regulations, banks are obligated to transfer the credit balances from these accounts to the Depositors Education and Awareness Fund (DEAF).
At the 27th Meeting of the Financial Stability and Development Council (FSDC), earlier this month, Finance Minister Nirmala Sitharaman urged regulators to initiate a targeted initiative aimed at facilitating the resolution of unclaimed deposits and claims in various sectors of the financial industry. This includes areas such as banking deposits, shares and dividends, mutual funds, insurance, and more.
According to RBI, “Balances in savings / current accounts which are not operated for 10 years, or term deposits not claimed within 10 years from the date of maturity are classified as “Unclaimed Deposits”. In an effort to address the issue of unclaimed deposits and ensure their rightful return, the Reserve Bank of India (RBI) has initiated a campaign named “100 Days 100 Pays.”
This campaign aims to encourage banks to locate and pay out the top 100 unclaimed deposits from each bank in every district across the nation within a hundred-day timeframe. By implementing this initiative, the RBI seeks to effectively reduce the number of unclaimed deposits within the banking system and facilitate their rightful return to the respective owners or claimants.
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How To Get Your Unclaimed Deposits In Banks?
To claim money from an unclaimed deposit held by the Depositors Education and Awareness Fund (DEAF), account holders need to personally visit the branch where their account is maintained. They are required to complete and sign Annexure-B, commonly referred to as the “Claim Form.”
Additionally, they must provide relevant information regarding the account, such as passbook or account statements, receipts or advice for term deposits or special term deposits. Recent photographs, along with valid proof of identity and address documents (KYC documents) issued after verifying their name and address on the List of Unclaimed Deposits displayed on the official website, should also be submitted.
In the case of nominees claiming unclaimed deposits, they are required to visit the bank where the deposit is held and provide necessary documentation including the deposit receipts, identity proof, and a copy of the account holder’s death certificate. Once the claim is verified by the bank, the funds will be released to the nominee.
