Reserve Bank of India asks banks to remit unclaimed deposits to DEAF by June 30

MUMBAI: The RBI today asked banks to remit deposits classified as unclaimed to the Depositor Education and Awareness Fund ( DEAF) by June 30.

The DEAF scheme has been notified in the Official Gazette on May 24, 2014, it said.

Banks should calculate the cumulative balances in all such accounts with unclaimed deposits, along with interest accrued till May 23, 2014, and transfer them to the newly created fund, the Reserve Bank of India (RBI) said in a communication to bank chiefs.

After the first transfer of amounts, banks should transfer amounts becoming due in each calendar month on the last working day of the subsequent month.

The DEAF was first announced in the annual monetary policy by RBI in May, 2013, with a view to use unclaimed deposits with banks for depositor education and awareness.

An unclaimed deposit is one wherein an account is not operated for 10 years or refers to any deposit or any amount remaining unclaimed for more than 10 years.

The RBI asked the banks to transfer the money using electronic form only and also laid out a detailed procedure for transfer of the money.