Published On: Sat, Mar 17th, 2018

Over Rs 11 Thousand Crore Lying Unclaimed With Indian Banks: RBI

Reserve Bank of India (RBI) reveals about Rs 11,300 crore is lying unclaimed with several banks including Punjab National Bank (PNB) and State Bank of India (SBI).

Over Rs 11 Thousand Crore Lying Unclaimed With Indian Banks

According to former RBI chair professor at IIM-B Charan Singh the money may be from deceased account holders or from those who are handling multiple bank accounts.

Singh added that the deposits could also be of benami or unaccounted money.

The Section 26 of Banking Regulation Act, 1949, mandates all the banks in the country to submit a return of all accounts in the country which are unoperated for ten years. The returns are to be submitted to RBI within 30 days after close of each calendar year.

However, the Section 26A of the same act adds depositors or claimants can claim the deposit or wish to operate the account once again even after expiry of the ten years period. The law says banks stands liable to repay the amount.

The money which are left unoperated for such a long period is parked in the Depositor Education and Awareness Fund, created under provisions of the Banking Laws (Amendment) Act, 2012.

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade. He can be contacted at knowledgeherald@gmail.com

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