The Reserve Bank of India has asked banks to remit deposits classified as unclaimed to the depositor education and awareness fund (DEAF) by 30 June 2014. Banks should calculate the cumulative balances in all accounts with unclaimed deposits, along with interest accrued till 23 May 2014 and transfer them to the newly created fund, RBI said in a communication to bank chiefs.
The Fund will be created by taking over inoperative deposit accounts which have not been claimed or operated for a period of 10 years or more or any deposit or any amount remaining unclaimed for more than 10 years within a period of three months from the expiry of the period of 10 years. The Fund shall be utilised for promotion of depositors’ interest. The depositor would, however, be entitled to claim from the bank his deposit or operate his account after the expiry of 10 years, even after the unclaimed deposit funds have been transferred to the Fund. The bank would be liable to pay the deposit amount to the depositor and claim refund from the Fund.
SEBI has increased the limit of cash investment from Rs20,000 to Rs50,000 per investor, per scheme, per financial year, subject to compliance with applicable Acts, Rules and Regulations, according to a SEBI press release. Presently, cash transactions in mutual funds are allowed up to Rs20,000 per investor, per mutual fund, per financial year. However, repayment in the form of redemptions, dividend, etc, with respect such investments shall continue to be paid only through banking channels.
The Reserve Bank of India (RBI), in its first bi-monthly credit policy review, has kept the repo rate unchanged at 8%, reverse repo, cash reserve ratio (CRR) and bank rate unchanged at 7%, 4% and 7%, respectively while reducing the statutory liquidity ratio (SLR) of scheduled commercial banks by 50bps (basis points) to 22.5% of their net demand and time liabilities. RBI also increased the eligibility limit for foreign exchange remittances to $125,000 and decided to allow non-residents to take out Indian currency notes of up to Rs25,000 while leaving the country. At present, only Indian residents are allowed to take Indian currency notes up to Rs10,000 out of the country.
Non-residents visiting India are not permitted to take out any Indian currency notes while leaving the country.