Banking
Unclaimed bank accounts: RBI asks RRBs, coop banks to frame policy

RBI had given detailed instructions to these banks to deal with unclaimed deposits or inoperative accounts and had advised them to find the whereabouts of the customers or their legal heirs

 

Mumbai: The Reserve Bank of India on Wednesday asked cooperative and regional rural banks to frame policies to locate customers with unclaimed deposits or inoperative accounts, reports PTI.

"On a review, with a view to further strengthen the regulatory framework for inoperative accounts and unclaimed deposits, state and central cooperative banks or regional rural banks are advised to put in place a board-approved policy on classification of unclaimed deposits, grievance redressal mechanism for quick resolution of complaints, record keeping, and periodic review of such accounts," RBI said in a circular.

RBI had given detailed instructions to these banks to deal with unclaimed deposits or inoperative accounts and had advised them to find the whereabouts of the customers or their legal heirs.

The central bank had also asked them for an annual review of such accounts, levy no charge for activation of inoperative accounts after due diligence.

However, it said, these banks have not been pro-active in tracking customers linked with unclaimed deposits or inoperative accounts.

In order to identify owners of such accounts with due diligence of know your customer (KYC) norms, RBI had also asked them to display list of unclaimed deposits or inoperative accounts which were inactive or inoperative for ten years or more on their websites by 30 June 2012.

The first periodic review of unclaimed deposits or inoperative accounts should be put up to their respective bank boards by 30 September 2012, RBI said.

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Electronic fund transfers should come free of cost: Pranab

The Finance Minister said RBI should proactively work and to see if all electronic banking transactions are possible without any charges being levied

 

New Delhi: Finance Minister Pranab Mukherjee asked RBI to work out a mechanism to ensure that banks charge no fee from customers for electronic transfer of funds. Pointing out that Oriental Bank of Commerce has waived off all charges for electronic transactions up to Rs1 lakh, he said, “I am confident that all the public sector banks would follow this excellent initiative,” reports PTI.
 
“I would also urge upon Reserve Bank of India (RBI) to proactively work on this front and to see that all electronic banking transactions should be possible without any charges being levied,” he said in his address to CEOs of public sector banks and financial institutions here.

The Department of Financial Services is working on the implementation of an action plan to bring the country's banking payment structure at par with global standards.

“Public sector banks must promote electronic mode of transactions over other modes. They should examine the possibility of making NEFT transactions up to Rs1 lakh free of charges, as has been done by Oriental Bank of Commerce,” he later told reporters.

For outward transactions under RTGS mechanism, banks charge Rs30 for electronic transfer of Rs2 lakh to Rs5 lakh and Rs55 for amounts above Rs5 lakh.

On the other hand, under NEFT the charges range between Rs5 and Rs25.

He also told the bank chiefs to that the use of debit cards to the point of sale without any transaction charges at least for micro and small transactions should be their next objective.

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