RBI asks banks to refund unclaimed deposits of Rs 1,700 cr

Source  :Sangita Mehta, ET Bureau Feb 7, 2012, 07.36PM IST


MUMBAI: The Reserve Bank of India (RBI) has directed banks to disclose the list of unclaimed and inoperative deposit account holders, in a bid to help some claimant trace their deposits. 


The RBI has told banks to disclose on its website names of the account holders and their address. In case the accounts are not in the name of individuals, 


RBI has said that the bank should provide the names of individuals authorised to operate the accounts.

Over the last few decades, the unclaimed amount spread over 1.03 crore bank accounts, has risen to Rs 1,700 crore with India's largest bank, SBI and its associates topping the list with unclaimed deposits of 279.7 crore


The list should provide a 'find' option which would enable public to search the list of accounts by name of the account holder. The list will includes names of depositors who have not operated their account for the last ten years.


 At the same time RBI has said that banks should not disclose details about the account number, its type and the name of the branch on its website.


It may be recalled that finance ministry, in September 2011 had directed PSU banks to disclose names of inoperative account holders on their website in an attempt to bring about great transparency. however bank management resisted this move. Indian Banks' Association had written to the finance ministry that the move could be violation to Banking Regulations Act whereby they are not allowed to disclose the details of customers.


In this case RBI has put the onus on banks to ensure that the claimants of the deposits are genuine. Banks are also required to inform public on its website about the process that they will have to follow to make a claim on deposit. RBI has said that banks will be required to complete the process by the end June 2012.