RBI urges banks to act fast to reduce unclaimed deposits – CNBC TV18
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Banks must find the right nominees for these dormant accounts and update the details in their books under the Know Your Customer (KYC) update process.
Earlier this year, the RBI instructed banks to identify accounts with no transactions for over a year. It also mandated updating account details linked to public schemes to ensure these accounts remain operational even during periods of inactivity.
These accounts, left unattended, pose risks as they are vulnerable to misuse for illicit purposes like money laundering and fraudulent transactions.
The RBI has clarified that beneficiaries of central and state government schemes, like Direct Benefit Transfer (DBT) and Electronic Benefit Transfer (EBT), should be exempt from this process.
The RBI pointed out instances where accounts linked to government benefits were frozen due to incomplete KYC updates. “These accounts are often linked to individuals from underprivileged sections of society,” the RBI said, urging banks to adopt a sympathetic approach and simplify procedures for activating such accounts.
Therefore, banks have been directed to launch special campaigns to revive inactive or frozen accounts and ensure the provision of Aadhaar updation facilities at branches offering Aadhaar-related services.
Catch all updates related to RBI policy here
(Edited by : Sriram Iyer)
First Published: Dec 6, 2024 10:42 AM IST
