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How and How much of that ₹35000 crore you can claim?
How and How much of that ₹35000 crore you can claim?
You can enrich the Indian banks or your heirs .... your choice. ₹35,000 crore is lying unclaimed on the banks. You may not even remember if you own anything in it because you or your parents or grandparents or great grandparents might have opened some bank account or created some fixed deposit and then forgot. As a rule, you should claim it from the bank, but now the amount has grown so big that RBI has ordered the banks to approach you and pay. Yet it's better that you claim. Here're the details.
Action points:
- Banks transferred an astounding amount of Rs.35,000 crore from unclaimed deposits to the Reserve Bank of India in February 2023.
- Unclaimed deposits include money in savings or current accounts not operated for 10 years and fixed or recurring deposits not claimed within 10 years from maturity.
- The Depositors Education and Awareness (DEA) Fund maintained by the RBI receives these unclaimed funds for investor awareness and education purposes.
- The RBI launched the '100 days, 100 pays' campaign to return unclaimed funds to rightful owners, with banks required to settle their top 100 unclaimed deposits in each district within 100 days.
- Challenges arise for banks in terms of resources and manpower to carry out the campaign effectively.
- Individuals can check if their name is among the unclaimed accounts by visiting the respective bank's website.
- The RBI had planned to create a centralized web portal to search for unclaimed deposits across multiple banks, but no timeline has been announced.
- Banks are obligated to contact customers if their account is dormant for over two years, but sometimes fail to reach them due to changed contact information or the account holder's demise.
- Claiming unclaimed deposits requires submitting a claim form and completing the KYC procedure with necessary documents.
- After verification, the bank will make the account operational and transfer the funds, along with any applicable interest.
- Unclaimed money earns interest at rates specified by the RBI, which may differ from the initial deposit rate.
- There is no specific time limit for filing claims, but banks are expected to settle claims within 15 days of submission with supporting documents.
- If issues arise, individuals can approach the bank's grievance cell or file a complaint with the Banking Ombudsman.
- Checking and claiming unclaimed deposits involve visiting the bank's website, checking lists of inactive accounts, and submitting the claim form and required documents at the nearest branch.
- In cases where the account holder is deceased without a registered nominee, claims can be made by beneficiaries or with appropriate documentation such as a succession certificate or probate.
- The process may be more complex for old accounts without digital banking enabled, requiring a visit to the bank in person.
- The exact amount in the unclaimed account may not be disclosed by the bank, making it uncertain how much effort and time is needed to claim the funds.
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