The incidence of unclaimed bank deposits can be minimized via meaningful cooperation between commercial banks and customers. Discuss (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 2 years
KEY POINTS
· Unclaimed deposits are commonly defined as those deposits which are lying in accounts not operated for a period of 10 or more years.
· Section 26 of the Banking Regulation Act, 1949 requires banks to submit to RBI information about these accounts within 30 days after each calendar year ends.
· Public Sector Banks (PSBs), obviously, had the highest share both in terms of number of accounts (84 per cent) and amount outstanding (83 per cent).
Possible solutions
· Organising area-wise special camps for revival or disposal of unclaimed accounts.
· Monitoring the position of unclaimed deposits in customer grievance redressal meetings at various levels.
· Business Correspondents can help establish contact with the holders of inoperative accounts or their legal heirs and reactivate the accounts.
· Asking banks to report the unclaimed deposits data population group-wise (i.e., rural/semi-urban/urban/metro) so that the issue can be tackled more effectively.
· Commenting upon the position of unclaimed deposits while carrying out on-site inspections of banks.
Ananta Kumar Muduli 2 years
Good morning sir
IAS Parliament 2 years
Try to stick to word limit. Keep Writing.
