What changed
RBI now requires co-operative banks and RRBs to proactively display lists of unclaimed deposits/inoperative accounts (inactive for 10 years or more) on their websites. Previously, banks only had to conduct annual reviews and find customers/heirs without public disclosure. The new rule adds a public-facing list with a search option and claim guidance.
What it means for you
Banks must invest in web infrastructure to publish and update these lists, ensuring data privacy by excluding account numbers and branch names. This increases transparency and reduces the risk of unclaimed deposits remaining dormant, but also requires robust verification processes to prevent fraudulent claims.
What you must do
- Identify all accounts inactive for 10 years or more and compile a list with only account holder names and addresses.
- Publish the list on your bank's website by June 30, 2012, with a 'Find' search feature for public use.
- Add clear instructions, forms, and documents for claiming unclaimed deposits or activating inoperative accounts on the same website.
- Implement operational safeguards to verify claimant genuineness before releasing funds.
- Update the list regularly to keep it current.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Regional Rural Banks (RRBs), Customers with unclaimed deposits or inoperative accounts
What information should we display on the website for these accounts?
Only the account holder's name and address. For non-individual accounts, include names of authorized operators. Do not disclose account numbers, account types, or branch names.
By when must we complete this action?
All steps must be completed by June 30, 2012, and the website should be updated at regular intervals thereafter.
Do we need to provide a way for the public to search the list?
Yes, the list must include a 'Find' option that allows users to search by the account holder's name.