RBI seeks comment on draft criteria to use Depositor Education Fund

MUMBAI: The Reserve Bank has sought comments from public on draft criteria for institutions seeking financial assistance from the Depositor Education Fund.

The draft proposes that agencies already engaged in bank depositors' education and awareness or proposing to take up depositors' education programmes, organising seminars, symposia, and research can be considered for assistance from the Depositor Education Fund.

These institutions could be a public charitable trust, registered societies, companies, university, any other educational institution recognised by government, state owned institutions, regimental fund or non-public fund established by the armed forces to be eligible to use these funds.

"The institutions/organisations/associations, shall unless specific exemption has been made in this regard by the Committee, be in existence for a minimum period of five years prior to date of application for registration," RBI said in notification seeking public comments on the draft criteria.

Further, the institutions will be required to have a minimum of 20 members and should have a clean track record, should not be for benefit of any individual, religion, community, or caste and should maintain regular accounts of its receipts and expenditure.

Among others, the institutions should utilise the money received only for activities permitted by RBI or Fund.

RBI has asked for comments from public, banks, academia, industry and other stakeholders by November 28, 2014.

The criteria for registering institutions, organisations and associations for grant of financial assistance is part of the Depositor Education and Awareness Fund Scheme, 2014.