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1200 Crore lying unclaimed with banks
By
SiliconIndia,Thursday, 10 December 2009, 18:19 Hrs
Mumbai: Unclaimed deposits worth 
1,188 crore are lying with Indian banks in 1.92 crore inactive or dormant accounts as of December 2008, according to the data released by the Reserve Bank of India (RBI) recently.
Though they continue to remain in the banks' books as liabilities there is no one claiming ownership for these accounts, reports Economic Times. An account is classified as 'dormant' if there are no transactions for more than two years. Money lying in these accounts are classified as unclaimed deposits if no one comes forward to claim ownership for at least 10 years.
Though the funds in these accounts remain in the banks books, they are transferred from the branch account to a head office account after ten years of being dormant, said a senior official with a public sector bank. Bankers say there are a number of reasons why accounts remain unclaimed. One reason is when people move jobs or locations they choose to keep their accounts active maintaining a small balance. Over the years, they ignore the deposit since the amount is too small to bother withdrawing. This was the case with public sector banks who had low minimum balance requirements for several years.
New generation private banks have lesser amount of unclaimed deposits because they have a high minimum balance requirement. If the minimum balance is not maintained banks debit the account maintenance charge every quarter resulting in the account getting depleted eventually.
Bankers also cite instances where legal heirs are not aware of the accounts owned by their benefactors and have known of it only after the death of the real owner of the accounts. However, the nomination facility and the 'know your customer' norms that banks are applying stringently now could help banks as it helps them get more information about the claimants. RBI should also consider putting names of people on a website to help banks trace claimants, said a banker on condition of anonymity.
In western countries, for instance in Canada, the central bank offers a facility to do an online search for unclaimed deposits and claim them. Unclaimed deposits of over $500 are held indefinitely while lesser amounts are held for 10-20 years at the original bank and another 10 years with the central bank. According to K Unnikrishnan, Deputy Chief Executive of Indian Banks' Association (IBA), a self regulatory body for Indian banks, banks did not make any provisions for interest payments on such accounts earlier.
However, the RBI has now directed banks to internally formulate a policy of interest payable at the time of a claim of such unclaimed deposits. Though they comprise a very small portion of a bank's resources, they earn a float as banks deploy these resources he added.
1,188 crore are lying with Indian banks in 1.92 crore inactive or dormant accounts as of December 2008, according to the data released by the Reserve Bank of India (RBI) recently. Though they continue to remain in the banks' books as liabilities there is no one claiming ownership for these accounts, reports Economic Times. An account is classified as 'dormant' if there are no transactions for more than two years. Money lying in these accounts are classified as unclaimed deposits if no one comes forward to claim ownership for at least 10 years.
Though the funds in these accounts remain in the banks books, they are transferred from the branch account to a head office account after ten years of being dormant, said a senior official with a public sector bank. Bankers say there are a number of reasons why accounts remain unclaimed. One reason is when people move jobs or locations they choose to keep their accounts active maintaining a small balance. Over the years, they ignore the deposit since the amount is too small to bother withdrawing. This was the case with public sector banks who had low minimum balance requirements for several years.
New generation private banks have lesser amount of unclaimed deposits because they have a high minimum balance requirement. If the minimum balance is not maintained banks debit the account maintenance charge every quarter resulting in the account getting depleted eventually.
Bankers also cite instances where legal heirs are not aware of the accounts owned by their benefactors and have known of it only after the death of the real owner of the accounts. However, the nomination facility and the 'know your customer' norms that banks are applying stringently now could help banks as it helps them get more information about the claimants. RBI should also consider putting names of people on a website to help banks trace claimants, said a banker on condition of anonymity.
In western countries, for instance in Canada, the central bank offers a facility to do an online search for unclaimed deposits and claim them. Unclaimed deposits of over $500 are held indefinitely while lesser amounts are held for 10-20 years at the original bank and another 10 years with the central bank. According to K Unnikrishnan, Deputy Chief Executive of Indian Banks' Association (IBA), a self regulatory body for Indian banks, banks did not make any provisions for interest payments on such accounts earlier.
However, the RBI has now directed banks to internally formulate a policy of interest payable at the time of a claim of such unclaimed deposits. Though they comprise a very small portion of a bank's resources, they earn a float as banks deploy these resources he added.
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Reader's comments (40)
1: sir,i am praveen frm kerala.i am staying with
dad and mom.both ofthem are not well.sir i am
finding lot of problems,only you cn help me
to become good person.now i am giving you
same place of god.i would like to get 5 crore
rupees from you.please help me out sir.please
reply by email.i am thankfull to you sir.and
i will do what ever you say sir.begging your
with tears.my landnumber is 04844032298
Posted by: Praveen kumar R - 31 Dec, 2009
2: Nationalized Banks should follow KYC norms
and communicate at the permanent addresses of
the customers whose accounts have been
dormant for more than 2 years. This will
reduce unclaimed deposit status in the days
to come.
Posted by: S D Joshi - 16 Dec, 2009
3: I think the govt should use these amounts for
development works as we are lacking money for
infrastructure development
Posted by: suresh joseph - 14 Dec, 2009
4:Without the permission or consent of the
account holders the amounts may not be
withdrawn from the respective accounts,
however the monthly balances will have a
reflection in the bank records, which the
banks can use it at its discretion in loans
etc. The Govt cannot use these funds under
any circumstances.
S D Joshi replied to: suresh joseph
post - 16 Dec, 2009
post - 16 Dec, 2009
5: why dont the govt use it for useful purposes
like interlinking of rivers, increasing
research, strengthening our army, etc.
Posted by: Swetha - 14 Dec, 2009
6: AMOUNT sent my address plzzz sir ,, i am poor
family,, loos for agri sir,,, my Address
,jayaraman.c,mokkanur(village)kuppanur(post)s
ukkam patty(via)salem(dt)tamilnadu(st)india
please sir sent many sir,, thank you sir,, connect no 09655020388
please sir sent many sir,, thank you sir,, connect no 09655020388
Posted by: Jayaraman.c - 14 Dec, 2009
7: All the banks have full adress of the
depositor.It should be the duty of the banker
to send letters to the depositor through
registered notice at first stage to contact
bank immediately and make account
operatbale.If even after none comes to the
bank, the banks should send the money lying
the depositors/account holder through Money
order.I think maximum accounts payments will
be received by the account holder and they
would appreciate the banks credentials and
honesty.How bank is authorised to eat away
money of the account holder /depositor on
superficious manners like dormant
account.They should close the account if not
operated for certain months or a year and
should send the money lying in account
through Money order which is safest way to
return the money.
The Reserve Bank of India and the Finance Ministry should formulate such a policy of refunding money of account holder through money order.If after sending money to the account holder through Money orde.In case the Indian Postal authorities are unable to remit the true account holder and money comes back ,then only it should be put in abeyance and dead money which can be used for better cause.
The authorities of bank should be responsible to refund back the money of account holder within certain prescribed period .In case of Non execution of the refund policy,the bank staff should be questionanble and panelised.
One would appreciate that where the bank grants loan,they can run to trace the account holder to recover bercause the non recovery makes the bank poor in NPA and banks are taken to task by the RBI.Why not then the bank should make it possible to return back the account holder money.
I hope someone would take strong step in the Ministry of Finance and Banking as well RBI to resolve the matter in public interest,
CHAND BABU BAIRATHI JAIPUR RAJASTHAN (EX BANKER)
cbbairathi@indiatimes.com.
The Reserve Bank of India and the Finance Ministry should formulate such a policy of refunding money of account holder through money order.If after sending money to the account holder through Money orde.In case the Indian Postal authorities are unable to remit the true account holder and money comes back ,then only it should be put in abeyance and dead money which can be used for better cause.
The authorities of bank should be responsible to refund back the money of account holder within certain prescribed period .In case of Non execution of the refund policy,the bank staff should be questionanble and panelised.
One would appreciate that where the bank grants loan,they can run to trace the account holder to recover bercause the non recovery makes the bank poor in NPA and banks are taken to task by the RBI.Why not then the bank should make it possible to return back the account holder money.
I hope someone would take strong step in the Ministry of Finance and Banking as well RBI to resolve the matter in public interest,
CHAND BABU BAIRATHI JAIPUR RAJASTHAN (EX BANKER)
cbbairathi@indiatimes.com.
Posted by: CHAND BABU BAIRATHI JAIPUR RAJASTHAN - 13 Dec, 2009
8:I agree with you, the lead should be taken by
the concerned banks to follow up with their
respective customers under KYC norms.
Samir replied to: CHAND BABU BAIRATHI JAIPUR RAJASTHAN
post - 16 Dec, 2009
post - 16 Dec, 2009
9:Well Said Mr Chand Babu....perfect way of
sorting the poor taxpayers white money....
sud replied to: CHAND BABU BAIRATHI JAIPUR RAJASTHAN
post - 13 Dec, 2009
post - 13 Dec, 2009
10:What is the address has changed? Many people
forget about old banks when they move from
one place to another. No one would just
ignore money in an account. Also, I have seen
many Private, Public and co-operative banks
issuing letters for Dormant accounts.
Finally, my money is my responsibility, banks
are keeping them for me. I want them to do
so, its not a compulsion. Hence, expecting
the already staff crunched banks to start
returning money is the most ridiculous
reasoning you could have given. Also, think
the person has changed his address, would you
now argue the banks must trace the new
address and send money there?
sandeep replied to: CHAND BABU BAIRATHI JAIPUR RAJASTHAN
post - 13 Dec, 2009
post - 13 Dec, 2009
11: It is the duty of the Finance Ministry to
show responsibility by recruiting adequate
staff (without showing computerisation as a
false pretext for not recruiting)for such
jobs such as these and loan recoveries which
the machines can Never Do!
Then the banks should search the whereabouts of these people and return the money to them promptly.Mostly a few men save without wife's knowledge and die without letting the family about the whereabouts of savings. People suffer without their own legitimate money without knowing that it belongs to them. It is just transferred to GOI without making any efforts to locate the family who need it!
Now another accumulation will be ATM failures and Claims not refunded for want of staff and for want of machinery and softwares. Banks are under-tech'd and not fully functionable as all are made to believe. Vast areas are not given to outsourcing due to undesirable Union pressures. Unions neither want outsourcing nor recruitment they kill their employees with the Global level decisions. Public sector utgs are under warfooted programs for destruction by a particular time to remove social justice and socialism after the decline of communism in Russia. People are divided and bad people are united for this task. Everywhere globally Govts and politicians have no responsibilities to the citizens.
Then the banks should search the whereabouts of these people and return the money to them promptly.Mostly a few men save without wife's knowledge and die without letting the family about the whereabouts of savings. People suffer without their own legitimate money without knowing that it belongs to them. It is just transferred to GOI without making any efforts to locate the family who need it!
Now another accumulation will be ATM failures and Claims not refunded for want of staff and for want of machinery and softwares. Banks are under-tech'd and not fully functionable as all are made to believe. Vast areas are not given to outsourcing due to undesirable Union pressures. Unions neither want outsourcing nor recruitment they kill their employees with the Global level decisions. Public sector utgs are under warfooted programs for destruction by a particular time to remove social justice and socialism after the decline of communism in Russia. People are divided and bad people are united for this task. Everywhere globally Govts and politicians have no responsibilities to the citizens.
Posted by: PARAM ESWARAN - 12 Dec, 2009
12: The money which is idle with the bank since
there are no claimants can be utilised for
lending. Especially in the rural areas for
children to go for higher studies. And also
to develop the villages by constructing
school buildings,providing drinking water and
electricity. It should be through Bank
monitoring and not through the Government. It
will become very useful and all our future
citizens will benefit through this.
Posted by: b.s.narasimha murthy - 11 Dec, 2009
13: Plz look into ur account as how much money is
"really" needed by u,,,rest idle money is
regarded as unclaimed also..
Posted by: Ateeq - 11 Dec, 2009
14: If these amount can be utilised for poor
people spl blow poverty line & fraction
of amount can help many of poor school
children who are not able t continue their
study due to lack of money.....
Posted by: Saugata Das - 11 Dec, 2009
15: opps. yaar. god ne itna pasie diya hai ke rak
kar paat hi nahi rahta.....but yaar paise to
paise hai .....send it to me.chalo at least
khoi island hi karid lugaa 10% as a prize rak
lena,
waiting
waiting
Posted by: sanjeev - 11 Dec, 2009
16: yaar please mere paise pe nazar na lagao.
ye 1200 cr mere hai wo to abhi jarurat nahi thi isliye withdraw nahi kiye baad mein kar lunga.
please stop claiming my money.
ye 1200 cr mere hai wo to abhi jarurat nahi thi isliye withdraw nahi kiye baad mein kar lunga.
please stop claiming my money.
Posted by: anu - 11 Dec, 2009
17:to claim this, please logon to
www.aukatmeinraho.com,
Regards
sameer,
Regards
sameer,
sameer replied to: anu
post - 11 Dec, 2009
post - 11 Dec, 2009
18: Hey, its mine, I forgot my 1200 Crs.. Please
send it accross! :)
Posted by: Ramu - 11 Dec, 2009
19: It is no big news
Some amount may be doubtful means black money but basically this amount belongs to old account holders.
Some amount may be doubtful means black money but basically this amount belongs to old account holders.
Posted by: YKGarg - 11 Dec, 2009
20: u ppl are givin gd sugstns..i too feel des
money shd b used for the bettrment..bt
unfortunately i dnt think its gonna wrk...
coz des ll smhw end up in our babus pockts
and der ll b no news abt it....
i dnt think ny funds for such good deeds have rchd its purpose without major unexplaind cut..
and above all dis is india...
the rich gets richer and poop bcoms poorer...
i dnt think ny funds for such good deeds have rchd its purpose without major unexplaind cut..
and above all dis is india...
the rich gets richer and poop bcoms poorer...
Posted by: frustrated citizen - 11 Dec, 2009
21: Please provide insurance for all Indians with
that money. Remember Work is God.
Posted by: Gods must be crazy - 11 Dec, 2009
22:Yes for the customers of those banks for a
fixed nominal amount and remove any fine for
those who could not maintain the minimum
balance.
Customer replied to: Gods must be crazy
post - 11 Dec, 2009
post - 11 Dec, 2009
23: I was duped of Rs 4870/- only. Please help me
recover it or catch the fraudster.
Posted by: Asitabh Paul - 11 Dec, 2009
24:Yes I will start searching if u pay me
Rs.4870 only
dcfds replied to: Asitabh Paul
post - 11 Dec, 2009
post - 11 Dec, 2009
25: Dear sir,
My one bank account no.01190005753 (SBI-Sainji, Uttaranchal) is missing since 2006 with some balance. I was applied to transfer it to SBH,Kandkoor, Distt,Rangareddy, A.P.. Now I am not getting any response from any one. Can u help me to find out it.
J K Nigam
Hyderabad
Mob:9963849333
Email:jitendraknigam@gmail.com
My one bank account no.01190005753 (SBI-Sainji, Uttaranchal) is missing since 2006 with some balance. I was applied to transfer it to SBH,Kandkoor, Distt,Rangareddy, A.P.. Now I am not getting any response from any one. Can u help me to find out it.
J K Nigam
Hyderabad
Mob:9963849333
Email:jitendraknigam@gmail.com
Posted by: jitendra Kumar Nigam - 10 Dec, 2009
26: They should start thinking in terms of
starting a department such as "Charity from
Anonymous" under the ministry of Human
Resource and Welfare. Transfer all such
unclaimed amount after 10 years of remaining
unclaimed to this department, which in turn
should actually spend this money for the
welfare of poor human resource, their
education and meal
Posted by: Ashwani - 10 Dec, 2009
27: You are right. Our Govt bank customer service
is very poor in comperision to Private Banks.
The delay or no response of Govt bank to his
customer is one of the main reason. For eg. I
was applied to transfer my account.
no.01190005753 (SBI-Saninjee,
Uttranchal-7929)to the Hyederabad in 2006. I
don't Know where they have transfered and
where is my account. I am not getting any
response from any branch. So, The account
holder name with existing bank should be
publeised on website to easily
identified/claim or search the account.
J K Nigam
Hyderabad
Mob:9963849333
Email:jitendraknigam@gmail.com
J K Nigam
Hyderabad
Mob:9963849333
Email:jitendraknigam@gmail.com
Posted by: Dr J K nigam - 10 Dec, 2009
28:Government banks service are better compared
to private banks.
At least they wont collapse.As we have seen in western countries.
Imagine what would happen if SBI and Bank of Baroda collapses due to bad loans.
The whole country could be in cayos and violence.
At least they wont collapse.As we have seen in western countries.
Imagine what would happen if SBI and Bank of Baroda collapses due to bad loans.
The whole country could be in cayos and violence.
sri suraj replied to: Dr J K nigam
post - 18 Dec, 2009
post - 18 Dec, 2009
29: please gimme that money...
Posted by: Obama - 10 Dec, 2009
30: The figure may not be true. The amount
mentioned is probably from only one bank in
India, like State Bank of India. My father
works for State Bank of Mysore and I remember
him telling some 10 years ago that there are
more than 1000 crores lying unclaimed in the
Bank.
I feel the amount may be more than 12,000 crore. Enough to eliminate unemployment, provide free medical insurance and start social security system.
I feel the amount may be more than 12,000 crore. Enough to eliminate unemployment, provide free medical insurance and start social security system.
Posted by: K.A.Prabbu - 10 Dec, 2009
31: please please handover that all money to me..
haa haa just for joke.
according to me these funds need to be transfered either to industrial development bank or rural devolopement banks.
which be again utilised for productivity of nation..
according to me these funds need to be transfered either to industrial development bank or rural devolopement banks.
which be again utilised for productivity of nation..
Posted by: Baswaraj - 10 Dec, 2009
32: What a pity news? plz. handover all unclaimed
amount to the needy people especially people
like me...
Posted by: Renjith kumar - 10 Dec, 2009
33: This is a good investment for the Banks as
they keep on investing those funds
regularly....
Posted by: Sam - 10 Dec, 2009
34: Either a good samatarian mgiht have put this
amount to overcome tne present crisis of
recession
OR
a black money of a business magnet, probably a political guru, might have left this amount and IS NO MORE NOW.
Please take the resolutsion in RBI to dispurse this amount for a better cause, without the political wigs...or bring a social responsiblity scheme from the bank to dispurse....
OR
a black money of a business magnet, probably a political guru, might have left this amount and IS NO MORE NOW.
Please take the resolutsion in RBI to dispurse this amount for a better cause, without the political wigs...or bring a social responsiblity scheme from the bank to dispurse....
Posted by: uppukar - 10 Dec, 2009
35: OMG.. wel now i doubt the credibility of of
Silicon people.. Coz what they state is
true.. den all recession related queries n
questions are solved.
Posted by: Labham - 10 Dec, 2009
36: It has to be seen that the money should go to
the appropriate person and there successor.
If no body comes forward is to be used for
good cause.
Posted by: New Techs - 10 Dec, 2009
37: Report published in popular Newspaper on
poverty status of the country has not defined
the present level of poverty line based on
which it has been concluded that about 37% of
Indian population lives under poverty line
but it definitely exposes the true story of
all development expenses done by Central and
state government during last 60 years. In the
name of poverty alleviation various
governments have spent billions and billions
of rupees every year but the result is that
actual number and actual percentage of
persons living below poverty line in India in
general has been moving up and up. Even banks
have lent crores and crores of rupees to poor
people and it is also true that banks have
waived many times their loans. Still Poor
people are growing poorer and their pain has
been increasing year after year. If we take
into account the rupee value in real terms
and redefine the poverty line, I apprehend
poverty line will move upto annual income of
rupees fifty thousand and ratio of the person
living below poverty line will be at least
75% of population. What is after all wrong
within the system that all efforts of
fighting against poverty are going in
vain.
Government all the time talks of GDP growth and tells with pride that India will lead the world. This story will also open the eye of such VIPs, politicians, social reformers, administrators and economists who talk of social inclusion but fail to do any thing in this regard.
Prices of all commodities have been moving up every day and the position of majority of Indians have been becoming alarming day by day due to erosion in their purchasing capacity day by day. Our Government talks of merger of banks, reservation for minorities, increasing the domain of OBC for some caste or the other but do not try to understand whether so called GDP growth is really benefiting poor people or confined to a few percentage of rich persons.
Our beloved Finance Minster do not try the understand the gravity of increasing pain of more than 90% of Indian population due to unprecedented price rise. Our beloved Prime Minister Mr. Manmohan Singh also forgets to take care of poor and people living below poverty line and the increasing pain of such poor people. Government as a whole has to understand that every talk of GDP growth is farce until it reaches in the hands of real poor. Mere allotment of fund for poor or giving of subsidy on petrol or fertilizers is not enough to mitigate the pain of poor. Honest, timely, judicious and efficient Distribution of resources is also needed for real help to poor.
Government all the time talks of GDP growth and tells with pride that India will lead the world. This story will also open the eye of such VIPs, politicians, social reformers, administrators and economists who talk of social inclusion but fail to do any thing in this regard.
Prices of all commodities have been moving up every day and the position of majority of Indians have been becoming alarming day by day due to erosion in their purchasing capacity day by day. Our Government talks of merger of banks, reservation for minorities, increasing the domain of OBC for some caste or the other but do not try to understand whether so called GDP growth is really benefiting poor people or confined to a few percentage of rich persons.
Our beloved Finance Minster do not try the understand the gravity of increasing pain of more than 90% of Indian population due to unprecedented price rise. Our beloved Prime Minister Mr. Manmohan Singh also forgets to take care of poor and people living below poverty line and the increasing pain of such poor people. Government as a whole has to understand that every talk of GDP growth is farce until it reaches in the hands of real poor. Mere allotment of fund for poor or giving of subsidy on petrol or fertilizers is not enough to mitigate the pain of poor. Honest, timely, judicious and efficient Distribution of resources is also needed for real help to poor.
Posted by: danendra jain - 10 Dec, 2009
38: That's a lot of money, hope soon the RBI puts
in some measures to start dispersing these
funds..
Posted by: Martin - 10 Dec, 2009
39:Thats my fkin account
Abhi replied to: Martin
post - 10 Dec, 2009
post - 10 Dec, 2009
40: These funds should partly invested in
Insurence Policy for the people in slums as
they are deprived from the benifits of
Insurence and partly used for providing them
Jobs and Accomodations so that there may no
slums around they have a right to good living
conditions because all diseases and uglyness
of the society develops in the slum and
spreads into the Higher society-
AIDS,Maleria,Flu and Alcoholisim,
Prostitution. Lets end these evils now and
its a great oppurtunity to use this money for
good cause and make our cities like
"Shanghai"!
Tuhin Kumar Dutta replied to: Abhi
post - 11 Dec, 2009
post - 11 Dec, 2009
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