Recently, the Parliament was informed that the unclaimed deposits in the banking system stood at Rs 14,578 crore in 2018. State Bank of India had an unclaimed deposit of Rs 2,156.33 crore. A bank account is considered inoperative if there are no transactions in it for at least two years. Generally, banks try to contact the customer after two years of no transaction. If customer cannot be traced, the bank then contacts the nominee.
Here is a look at what happens to your unclaimed deposit and how to track it:
If you have an unclaimed amount, banks are supposed to calculate the cumulative balances in all such accounts and transfer the amount to the Depositor Education and Awareness Fund (Fund) on the last working day of subsequent month along with the interest accrued. The unclaimed deposit continues to earn interest. If you have a deposit amount lying in your savings account, it will accrue interest on savings bank account rate. If you have a fixed deposit lying unclaimed after maturity, the FD continues to earn interest on the savings bank interest rate.
If you have an unclaimed deposit, you can track it down. According the Reserve Bank of India, all banks are supposed to display list of unclaimed deposits and inoperative accounts. Banks have to locate the whereabouts of the customers and their legal heirs. Banks are supposed to do an annual review of accounts in which there are no operations. If there are operations after a delay, it should be allowed after due diligence and banks shouldn’t charge for activation of inoperative account. Banks are also supposed to display the list of unclaimed deposits and inoperative accounts which are inactive or inoperative for 10 years or more on their websites.
If you think that you have an unclaimed deposit, you can go to the bank website and check for it. All banks are supposed to give list the names of the individuals who have unclaimed deposits. To make it search friendly, the banks are also supposed to provide a search option where you can enter your names and date of birth to find the account details.
{{/usCountry}}If you think that you have an unclaimed deposit, you can go to the bank website and check for it. All banks are supposed to give list the names of the individuals who have unclaimed deposits. To make it search friendly, the banks are also supposed to provide a search option where you can enter your names and date of birth to find the account details.
{{/usCountry}}If you want to revive the inoperative account or unclaimed deposit, you will have to submit an application to the branch where the account is maintained. Application should be signed by all the joint account holders if it is in joint names. You will have to provide KYC documents such as two recent passport size photographs, address proof, identity proof and you will also have to do one financial transaction for activation of the accounts.