RBI Directs Banks to Streamline Handling of Inoperative Accounts and Unclaimed Deposits

RBI Directs Banks to Streamline Handling of Inoperative Accounts and Unclaimed Deposits: The Reserve Bank of India (RBI) has directed banks to streamline the management of inoperative accounts and unclaimed deposits. The new guidelines mandate that banks conduct due diligence to identify accounts with dormant balances, and provide clearer processes for their reactivation or settlement. The instructions are aimed at reducing the volume of unclaimed funds while ensuring that customers' assets are not left unaddressed. Additionally, the RBI has emphasized better customer outreach and transparency in reporting unclaimed deposits. The central bank’s move is expected to bring greater efficiency and accountability in the management of dormant accounts, ultimately ensuring that individuals can reclaim their unclaimed deposits or transfer them to the government’s unclaimed funds pool.