Banks to set up pool for unclaimed money

Banks are looking up to set up a separate pool for the unclaimed deposits estimated at Rs 1,360 crore. The dormant accounts are also being identified with a view to ensure that there is no suspect account holder and the money is not misused. Mahua Venkatesh reports.

Banks are looking up to set up a separate pool for the unclaimed deposits estimated at Rs 1,360 crore. The dormant accounts are also being identified with a view to ensure that there is no suspect account holder and the money is not misused. The separate pool would also be monitored closely. In case there is any transaction pertaining to this fund, the bank authorities may have to send a report to the Reserve Bank of India (RBI).

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Any account, which has not been used for 10 years is considered "suspect." According to the reports, about 75% of these accounts are of savings.

"There is no cause for concern, we have taken all steps to ensure that the unclaimed money lying with the banks is not misused and we are closely monitoring these accounts," M Narendra, chairman and managing director, Indian Overseas Bank, told HT.

TM Bhasin, CMD, Indian Bank echoed the same sentiment and said that all measures are being taken to see that the funds are not misappropriated.

Banks are also trying to locate the source in case of any sudden transaction in a 'dormant' account. "In such cases, banks check the person who is trying to make a transaction to ensure that the money goes into safe hands," Bhasin said.

While the RBI has received complaints from customers trying to use these inactive accounts, bankers said that there is a procedure that is followed by the banks to ensure that the money is safe. "Since these accounts have not been used regularly, we need to check and be sure that the money is not going to any wrong hand," a senior official at a public sector bank said.