Unclaimed deposits of over ₹45,000 cr transferred to special fund
The Finance Ministry has reported to the Lok Sabha that public sector banks (PSBs) have transferred over ₹45,000 crore in unclaimed deposits to the Depositor Education and Awareness (DEA) Fund during the period from 2019-20 to 2024-25 (up to December 31, 2024). This fund is managed by the Reserve Bank of India (RBI) as part of the Depositor Education and Awareness Fund Scheme, 2014.
What is Unclaimed deposits?
Unclaimed deposits refer to the money that’s been sitting idle in savings and checking accounts for ten years without any activity, or term deposits that haven’t been claimed within a decade after they’ve matured. When accounts remain unclaimed for such a long period, banks must transfer the funds to the RBI’s DEA Fund.
Process of Transfer to the DEA Fund
- Identification of Inactive Accounts: Banks identify accounts that have remained dormant for 10 years.
- Declaration as Unclaimed: If no transactions occur in the specified period, they are classified as unclaimed deposits.
- Transfer to the DEA Fund: The Reserve Bank of India (RBI) maintains the DEA Fund, where these unclaimed deposits are pooled.