The Hindu
The Reserve Bank of India has asked banks to annually review accounts that have not seen customer-induced transactions for over a year, and term deposit accounts where there is no explicit renewal mandate and the funds have not been withdrawn after maturity. It also barred banks from levying penal charges for non-maintenance of minimum balance in any account classified as inoperative or for activation of inoperative accounts.
The instructions are part of fresh guidelines for inoperative accounts and unclaimed deposits with the aim of reducing the quantum of unclaimed deposits and frauds and improving grievance redressal.
The revised framework follows a review by the central bank and includes measures to be put in place by banks on classification of such accounts, their periodic review, ways to prevent fraud, expedite grievance redress, trace account holders or their nominees/heirs, claims settlement, and the account closure process.
