UP tops nation in unclaimed deposits worth `4,580 crore: RBI
Lucknow: In a startling revelation, the Reserve Bank of India (RBI) has raised the alarm over the burgeoning pile of unclaimed deposits, with Uttar Pradesh (UP) leading the nation in unclaimed funds, totaling a staggering Rs 4,580 crore.
The central bank has issued a warning, urging banks across the state to initiate a comprehensive campaign in every district aimed at identifying depositors or their legal heirs linked to the top 100 unclaimed deposits. The RBI has mandated a swift return of these dormant funds within a three-month timeframe.
Of notable concern is the revelation that even government departments have inadvertently forgotten to reclaim substantial sums of money stashed away in various accounts. The Chief Secretary has officially requested a comprehensive list of all government department deposits from the RBI.
Under the prevailing guidelines, any deposits within savings and current accounts that have remained untouched for a decade fall into the ‘unclaimed money’ category. This also extends to Fixed Deposits (FDs) that, even after reaching maturity, linger unclaimed for a decade.
Most of these unclaimed accounts are attributed to individuals who are no longer alive, leaving their unaware families in the dark regarding these financial assets. Additionally, a significant number of accounts are suspected to be fraudulent, containing substantial sums that no one dares to claim, fearing potential legal repercussions. This trend stems from the aftermath of the demonetization exercise, wherein many deposited funds but hesitate to withdraw them, apprehensive of arousing scrutiny from monitoring agencies.
Government sources suggest that approximately Rs 900 crore belonging to government departments lie dormant in various banks. To adhere to protocol, banks have diligently transferred unclaimed funds to the RBI, which, notably, accrues interest on these dormant sums. To disburse the accumulated interest, banks are required to reactivate the dormant accounts, eventually reuniting the money with its rightful owners or heirs.
Notably, Uttar Pradesh was absent from last year’s list of the top eight states with unclaimed deposits. The year 2020-21 reported a total of Rs 39,264 crore in unclaimed deposits, which surged to Rs 48,262 crore in the financial year 2021-22. The leading states for unclaimed deposits in the prior year included Tamil Nadu, Punjab, Gujarat, Maharashtra, West Bengal, Karnataka, Bihar, and Telangana/Andhra Pradesh. Uttar Pradesh’s newfound prominence in this unsettling ranking is indicative of the pressing need for corrective action.
Meanwhile, the RBI’s Mumbai headquarters has issued directives to all districts within the state to embrace a 100 percent digital banking landscape. In a bid to enhance financial inclusivity, the RBI underscores the pivotal role played by Business Correspondents and underscores the importance of ongoing monitoring of their operations by the banking institutions. As the campaign to unearth these dormant fortunes kicks into high gear across Uttar Pradesh, it remains to be seen how this massive operation will impact the state’s fiscal landscape and reunite countless depositors with their long-forgotten wealth.
