The Reserve Bank of India (RBI), in its constant endeavor to safeguard depositor interests and promote financial literacy, issued FAQs in the Depositor Education and Awareness (DEA) Fund Scheme in 2014. This initiative aims to address unclaimed deposits, educate depositors, and facilitate the refund process in a transparent and efficient manner.
1. What is the DEA Fund Scheme, 2014, and when did it come into effect?
The DEA Fund Scheme, 2014, empowered by Section 26A of the Banking Regulation Act, 1949, established the Depositor Education and Awareness (DEA) Fund. It came into effect on May 24, 2014, marking a significant step towards enhancing depositor education and awareness.
2. Which amounts are credited to the DEA Fund?
The DEA Fund encompasses credit balances in dormant deposit accounts maintained with banks, unclaimed for 10 years or more. This includes various types of accounts such as savings, fixed deposits, current accounts, and more, along with other unclaimed balances and deposits specified by the RBI.
3. When are the specified amounts credited to the DEA Fund?
Banks are mandated to transfer such unclaimed amounts to the DEA Fund on the last working day of the month following the completion of 10 years of inactivity or unclaimed status of the account. For example, deposits becoming due for transfer in April are transferred to the DEA Fund by the end of May.
4. Is interest accrued on these amounts also transferred to the DEA Fund?
Yes, banks are required to transfer the entire amount, including accrued interest, to the DEA Fund at the time of transfer.
5. Can depositors claim a refund of their unclaimed amounts from the DEA Fund?
Yes, depositors can claim refunds from their respective banks. Upon receiving a claim request from the depositor or their legal heirs, banks repay the claimed amount along with applicable interest. Subsequently, banks lodge a claim for reimbursement from the DEA Fund.
6. Is there a time limit for depositors to claim amounts from the DEA Fund?
While there’s no specific time limit prescribed, depositors are encouraged to claim their unclaimed amounts as soon as they become aware of them, ensuring timely resolution.
7. What is the procedure for claiming from the DEA Fund if a bank is under liquidation?
In the event of a bank undergoing liquidation, depositors must approach the liquidator to initiate the claim process. The procedure varies depending on whether the deposits were covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC) or not. Claims on DICGC-covered deposits are settled directly by the DEA Fund, while claims on non-DICGC-covered deposits are reimbursed to the liquidator after settlement with the depositor.
The DEA Fund Scheme, 2014, stands as a testament to the RBI’s commitment to protecting depositor interests and promoting financial literacy. By streamlining the process of handling unclaimed deposits and facilitating refunds, this scheme fosters trust and transparency in the banking system, ensuring that depositors’ funds are safeguarded and accessible when needed.
