Informist, Tuesday, May 11, 2021

MUMBAI – Effective today, banks have to pay claimants 3% interest on unclaimed deposits transferred to the Depositor Education and Awareness Fund, the Reserve Bank of India said in a notification.

As per central bank norms, all banks must transfer money lying in accounts that have been inoperative for at least 10 years to the Depositor Education and Awareness Fund.

Accordingly, all the banks are advised to calculate the interest payable on interest-bearing deposits transferred to the central bank at the rate of 4% up to Jun 30, 2018; 3.5% for the period Jul 1, 2018 to May 10, 2021; and 3% from today till the time of payment to the depositor.  End

Reported by Richard Fargose

Edited by Snigdha Kuttikat

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