RBI Rules Bank Account : Recently, the Reserve Bank of India (RBI) has issued new rules for savings and current accounts that have been inactive for more than 10 years. Along with this, RBI has given fresh instructions to all banks. To know the complete details related to this update, read the full news below:
The Reserve Bank of India (RBI) has issued new guidelines for savings and current accounts that have been inactive for more than 10 years. Now, in order to reactivate such accounts and make a claim on them, banks will provide the facility for updating KYC (Know Your Customer). This is an important step for account holders who have not operated their accounts for a long time.
According to the new directions issued by the RBI, the KYC updating process will also include Video Identification Process (VIP). In addition, banks can also make use of Registered Business Correspondents to activate inoperative accounts. This can help customers in rural and remote areas to update their KYC and get their inoperative accounts reactivated.
What do banks currently do with inactive accounts?
Any bank account that has not been used for the last 10 years is called an inoperative account. Similarly, the balance in an account that has not been claimed for 10 years is called an “unclaimed deposit”.
Where is the DEA Fund used?
At present, banks transfer the balance of such accounts to the Deposit Education and Awareness (DEA) Fund. The DEA Fund is used to promote the interests of depositors and for other purposes that are necessary to protect and support the rights and interests of account holders.