Srinagar, June 10: In a scathing criticism to the banks, the Reserve Bank of India has said that despite its instructions, banks have not been pro-active in tracing customers linked with unclaimed deposits/inoperative accounts.
 The central bank said the need to identify the owners of these unclaimed deposits/inoperative accounts is closely linked to KYC due diligence.
 “In terms of our circular dated February 7, 2012 banks were advised that they should display the list of unclaimed deposits/inoperative accounts which are inactive/ inoperative for ten years or more on their respective websites by June 30, 2012.”
 “The list so displayed on the websites must contain only the names of the account holder(s) and his/her address in respect of unclaimed deposits/inoperative accounts, etc.”
 Aimed at strengthening the Regulatory Framework for Unclaimed Deposits, the RBI had earlier advised all Scheduled Commercial Banks to find the whereabouts of the customers of unclaimed accounts and their legal heirs.
 The instructions made inter alia, include: annual review of accounts in which there are no operations, operations in such accounts to be allowed after due diligence, and no charge to be levied for activation of inoperative accounts, etc.
 The central bank had said: “With a view to further strengthen the regulatory framework for inoperative accounts and unclaimed deposits, banks are advised to put in place a Board approved policy on classification of unclaimed deposits; grievance redressal mechanism for quick resolution of complaints; record keeping; and periodic review of such accounts.”
 The first periodic review of unclaimed deposits/inoperative accounts should be put up to their respective bank Boards by September 30, 2012, the banks were instructed.

Lastupdate on : Sun, 10 Jun 2012 21:30:00 Makkah time
Lastupdate on : Sun, 10 Jun 2012 18:30:00 GMT
Lastupdate on : Mon, 11 Jun 2012 00:00:00 IST