A significant sum of money belonging to residents of Chandigarh has quietly slipped from local cooperative banks into the vaults of the Reserve Bank of India (RBI). This transfer involves a substantial ₹12 crore that was lying dormant in hundreds of accounts across the city's cooperative banking sector.
The Scale of Dormant Funds in Chandigarh
The data reveals a concerning picture of financial inactivity. The funds were transferred from a total of 573 accounts that had seen no customer-initiated transactions for a period of ten years or more. These accounts were spread across various cooperative banks operating within the Union Territory. The sheer volume—₹12 crore—highlights how unclaimed deposits can accumulate into a major pool of idle capital within the banking system.
The Regulatory Process Behind the Transfer
This action is not an arbitrary seizure but a mandated procedure under banking regulations. According to the rules, when an account shows no activity for ten years, the bank is required to classify it as "inoperative" or "unclaimed." After following due diligence and notification processes, if the account holder or nominee does not come forward, the credit balance is transferred to the RBI's Depositor Education and Awareness (DEA) Fund.
The primary purpose of this fund is to promote depositor education and awareness. However, it is crucial to note that the transfer to the RBI does not extinguish the bank's liability or the depositor's right to the money. Account holders or their legal heirs can still claim their funds by approaching their respective bank branch with the necessary proof of identity and account ownership. The bank would then reclaim the amount from the RBI fund to settle the claim.
Implications and the Path Forward for Account Holders
This development serves as a stark reminder for the public to regularly review and operate their bank accounts, including savings accounts, fixed deposits, and recurring deposits. It also underscores the importance of keeping nomination details updated and informing family members about financial assets.
For the 573 account holders in Chandigarh, their money is not lost. The process to reclaim it involves:
- Visiting the branch where the account was held.
- Providing valid KYC documents and proof of account ownership.
- Filling out the required claim forms as per the bank's procedure.
The movement of such a large sum from Chandigarh alone points to a wider national issue of unclaimed deposits. It emphasizes the need for both banks to intensify efforts to trace customers and for individuals to maintain financial hygiene. The RBI maintains a centralized web portal where individuals can search for unclaimed deposits across multiple banks, a tool that can help reunite people with their forgotten funds.
