A staggering Rs 9,500 crore unclaimed deposits are lying with the public sector banks (PSBs) as on December 31, 2017, RBI data showed.
A staggering Rs 9,500 crore unclaimed deposits are lying with the public sector banks (PSBs) as on December 31, 2017, RBI data showed. Similarly, Rs 50 crore in total are held for over 10 years with the public sector life (Rs 35.23 crore) and general insurance firms (Rs 15.67 crore) as on September 30, 2017, IRDAI reported.
The unclaimed deposits by state-run banks under for more than 10 years are credited to Depositor Education and Awareness Fund, according to the DEAF scheme.
On similar note, the unclaimed amount in public sector insurance companies and insurance firms each financial year for more than a decade is transferred to Senior Citizens Welfare Fund on or before the first day of March every year.
The lenders are liable to pay the unclaimed amount to the depositor or claimant and claim refund of such amount from DEAF.
Understanding unclaimed deposits
The bank accounts or deposits that are inoperative for 10 years or above are termed as unclaimed deposits. A savings bank interest rate is earned by the maturity proceeds of the these deposits. The account is credited notwithstanding if it is operative or not.
Meanwhile, Bank deposits grew over 10 per cent on a year-on-year (y-o-y) basis during the fortnight ended February 15 for the first time in nearly one-and-a-half years, show data released by the RBI. As on February 15, the value of deposits with banks stood at Rs 121.21 lakh crore, up 10.16 per cent on year.