1. Home
2. Letters

Welcome RBI initiative

Kashmir Times. Dated: 2/8/2013 3:44:36 PM

Dear Editor,
It refers to Reserve Bank of India (RBI) and Union Government taking cognizance of submissions made through Public-Grievance-Portal regarding banks, especially the private ones, taking undue advantage of unclaimed funds in inoperative bank-accounts and deposits wherein RBI has issued directives to put details of unclaimed funds for ten years or more on websites of respective banks. Recent passed Banking Laws (Amendment) Bill 2012 by the Parliament will make banks transfer all unclaimed funds in banks for ten years or more to ‘Depositors Education and Awareness Fund’. Funds lying in ‘suspense’ accounts should also be transferred in this fund because some private banks have tactfully retained huge amount of account-holders’ funds in ‘suspense’ accounts.
But a perusal of banks’ websites reveals that they have not followed RBI directive to make details of unclaimed funds public. A period of ten years allowed for banks to utilize unclaimed funds is too much which should be reduced to three years as is the system in case of unclaimed dividends of companies. Necessary amendment should be done in Banking Laws.
--Madhu Agrawal
1775 Kucha Lattushah
Dariba Delhi.