1,360 crore unclaimed funds in banks

An estimated Rs 1,360 crore is lying unclaimed dein foreign and national banks in India. Data provided by RBI in response to Right to Information queries said that the apex bank had asked banks to redouble their efforts in tracking down customers and their legal heirs.

Records reveal Rs 158 crore is lying in SBI and its associate banks. While about Rs 988 crore is in nationalized banks, the share of private sector and foreign banks is about Rs 143 crore and Rs 473 crore, respectively.

The RBI, in response to an RTI application by activist S C Agrawal, has expressed concern at the increase in the amount. A July 2010 RBI had circular said, "In view of the increase in the amount of unclaimed deposits with banks year after year and the inherent risk associated with such deposits, banks should play a more proactive role in finding the whereabouts of the account holders whose accounts have remained inoperative."

The order said, besides the fact that it had received complaints from customers after their accounts had been declared inoperative, there was a feeling that banks were "undeservedly" enjoying the unclaimed deposits while paying no interest on it.

The RBI has suggested that banks carry out an annual review of accounts that have registered no operations for over a year, and pin down reasons for inactivity. It also suggested that if letters returned unanswered, banks should make efforts to track down customers and their legal heirs through those who introduced them or send e-mails if accounts are held by non-resident Indians.
TNN