FSDC bats for special drive for settlement of unclaimed deposits

NEW DELHI: High-powered Financial Stability and Development Council (FSDC) headed by Finance Minister Nirmala Sitharaman on Monday asked the regulators to initiate a special drive to settle unclaimed deposits in banks and financial institutions.

Briefing reporters about the discussions in the meeting, Economic Affairs Secretary Ajay Seth it was deliberated that regulators should conduct a special drive to facilitate the settlement of unclaimed deposits and claims in the financial sector across all segments, such as banking deposits, shares and dividends, mutual funds, insurance, etc.

“It was also noted that, as the Union Budget has announced that unclaimed deposits and shares and dividends, which are lying in the pool, a drive should be taken by the concerned regulator, especially where the nominee details are available with them though the nominees may not be aware of that.

In a time-bound manner, that activity should be taken but where the nominee details are not there, the process has to be put in place, he said.

About Rs 35,000 crore unclaimed deposits as of February 2023 were transferred to the Reserve Bank by public sector banks (PSBs) in respect of deposits, which have not been operated for 10 years or more. These unclaimed deposits belong to 10.24 crore accounts transferred to the RBI as of the end of February 2023.

Last month, the Reserve Bank Governor said a centralised portal would be ready in three to four months wherein depositors and beneficiaries can access details of unclaimed deposits across various banks.

The 27th meeting of the FSDC was attended by all financial sector regulators, including RBI Governor Shaktikanta Das. This was the first meeting of the FSDC after the passage of the Rs 45 lakh crore Budget for 2023-24 with greater emphasis on capital expenditure with an outlay of Rs 10,00,961 crore.

About Rs 35,000 crore unclaimed deposits as of February 2023 were transferred to the Reserve Bank by public sector banks