“Depositor Education and Awareness” (DEA) Fund

July 25, 2023

Unclaimed deposits in the banking sector have been a persistent concern, prompting regulatory bodies to take proactive steps to protect consumer interests. The Reserve Bank of India (RBI) established the Depositor Education and Awareness (DEA) Fund Scheme in 2014 to address this issue. Over the past five years, significant funds have been transferred from the DEA Fund to banks for refunding unclaimed deposits, ensuring rightful claimants receive their dues.

The DEA Fund: Safeguarding Consumer Rights

The Depositor Education and Awareness Fund Scheme, initiated by the RBI in 2014, serves as a crucial mechanism to tackle unclaimed deposits. Its main objective is to create awareness among depositors and protect their interests in the financial realm. By notifying the fund scheme, the RBI laid the foundation for promoting financial literacy and safeguarding consumers’ rightful claims.

Public and Private Sector Contributions

Public sector banks have made significant contributions to the DEA Fund, transferring a staggering Rs 36,185 crores of unclaimed deposits until March 31, 2023. Private banks have also shown responsibility by transferring Rs 6,087 crores to the DEA Fund during the same period. These contributions demonstrate the collective effort to address unclaimed deposits and prioritize consumer welfare.

RBI’s “100 Days 100 Pays” Campaign

The RBI has taken proactive measures to expedite the process of locating and paying unclaimed deposits. The “100 Days 100 Pays” campaign challenges banks to locate and settle the top 100 unclaimed deposits in each bank and district within 100 days, commencing on January 6, 2023, and concluding on September 8, 2023. This campaign fosters a sense of urgency and dedication in facilitating rightful claimants to access their unclaimed funds.

Promoting Transparency and Accessibility

To further enhance consumer accessibility, the RBI plans to establish a centralized web facility. This web facility will allow the public to locate unclaimed deposits across various financial institutions, facilitating the resolution process and ensuring unclaimed funds reach their rightful owners.

Banks’ Obligations for Unclaimed Deposits

The banks are required to take specific actions regarding unclaimed deposits. These actions include displaying the list of inactive/inoperative unclaimed deposits on their websites. Moreover, banks must diligently seek the whereabouts of customers and their legal heirs to facilitate the return of unclaimed deposits. Additionally, formulating a board-approved policy on unclaimed deposit classification and implementing a grievance redressal mechanism for complaints and periodic review of unclaimed deposit accounts are essential measures to ensure transparency and accountability in the system.

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