The Reserve Bank of India has directed banks to convert credit balances in any inoperative foreign currency (FC) denominated deposit into Indian rupee if the former remains not in use for three years from the date of maturity of deposit.

Thereafter, the depositor shall be entitled to claim either the said Indian rupee proceeds and interest or the foreign currency equivalent (at the prevalent exchange rate) of the Indian rupee proceeds of the original deposit, the RBI added.

The RBI further said in case of inoperative foreign currency denominated deposit not in use for three years and having no fixed maturity period, the bank should give three month notice to the depositor and convert the deposit from the foreign currency to Indian rupee.

“...the depositor shall be entitled to claim either the said Indian rupee proceeds and interest thereon, if any." (The Hindu)