Latest news with #Video-CustomerIdentificationProcess
Mint
2 days ago
- Business
- Mint
Did not operate your bank account for 10 years? RBI revises rules on inoperative bank accounts. Check latest rules
The Reserve Bank of India (RBI) has updated its rules with regards to inoperative accounts/ unclaimed deposits in banks. The latest instructions which will be called Inoperative accounts/ unclaimed deposits in banks - Revised instructions (Amendment) 2025 will come into force with immediate effect. As of now, the credit balance in any deposit account maintained with banks, which have not been operated for ten years or more, or any amount remaining unclaimed for ten years or more are meant to be transferred by banks to DEA fund maintained by the Reserve Bank of India (RBI). The DEA fund is meant to be used for promotion of depositors' interests and for such other purposes which may be necessary for the promotion of depositors' interest as may be specified by the RBI on a regular basis. The latest guidelines released on June 12 list out three points. First is that the bank will make available the facility of updation of KYC for activation of inoperative accounts and unclaimed accounts at all branches including non-home branches. Second is that the updation of KYC will also include video identification i.e., video customer identification process. Third is that the bank may even use the facilities of authorised business correspondent for activation of inoperative accounts. 'A bank shall make available the facility of updation of KYC for activation of inoperative accounts and unclaimed deposits at all branches (including non-home branches). Further, a bank shall endeavour to provide the facility of updation of KYC in such accounts and deposits through Video-Customer Identification Process (V-CIP),' reads RBI circular. 'The V-CIP related instructions under Master Direction - Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time) shall be adhered to by the bank. Additionally, the services of an authorised Business Correspondent of the bank may be utilised for activation of inoperative accounts as prescribed in paragraph 38(a) (iia) of the above Master Direction,' it reads further. For all personal finance updates, visit here
Time of India
23-05-2025
- Business
- Time of India
Big relief proposed by RBI for account holders in activating an inoperative bank account or claiming unclaimed deposits
The Reserve Bank of India on May 23, 2025 has proposed a significant change for banking customers who are struggling with getting their in-operative bank account active again. This new change in rules for accessing inoperative accounts/ unclaimed deposits in a bank is at draft stage and not yet active as the RBI is inviting public comments about the same. If you wish to give your inputs about the same then do it on or before June 6, 2025. This rule changes relates to how a customer can access the in-operative bank account or the unclaimed money in a bank account. The RBI proposed that banks will have to launch a KYC updation facility at all of their branches including the home branch and also enable video KYC if so, requested by a customer. Once the KYC is done, the in-operative bank account or unclaimed money can be accessed again. Read below to know what the RBI said about the proposed rule change for inoperative accounts/ unclaimed deposits in a bank. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Here's The Average Price of a 6-Hour Gutter Upgrade In BECKLEY Read More Undo What did RBI say? The RBI said in a notification dated May 23, 2025, the following: A bank shall make available the facility of updation of KYC for activation of inoperative accounts/ unclaimed deposits at all branches (including non-home branches) and through Video-Customer Identification Process (V-CIP) if requested by an account holder, subject to the facility of V-CIP being provided by the bank. The V-CIP related instructions under Master Direction - Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as updated from time to time) shall be adhered to by the bank. Additionally, an authorised Business Correspondent of the bank may be utilized for activation of inoperative accounts as prescribed in paragraph 38(a)(iia) of the above Master Direction. What happens if you don't make in-operative bank accounts active again or don't claim the unclaimed funds in a bank account? If you don't claim back the unclaimed funds or make the in-operative accounts active again and this has happened for ten years or more, then the funds in these accounts will be transferred to the RBI's Depositor Education and Awareness (DEA) fund. Just like in case of shares which remain unclaimed for seven or more years, it is transferred to the Investor Education and Protection Funds (IEPF), in banking parlance it is transferred to DEA funds. Live Events In the notification, the RBI said: 'As per instructions, issued vide circular 09.08.024/2023- 24 dated January 1, 2024 (hereinafter called the extant instructions), the credit balance in any deposit account maintained with banks, which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, as mentioned in paragraph 3(iii) of the 'Depositor Education and Awareness' (DEA) Fund Scheme, 2014, are required to be transferred by banks to DEA Fund maintained by the Reserve Bank of India.' How to share your comments about the new proposed change in unclaimed deposit, in-operative bank accounts? The RBI said in a press release dated May 23, 2025, 'Reserve Bank has released today the draft circular on Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions (Amendment) 2025 which modifies the aforementioned instructions. The comments on the draft circular are invited from the public/ stakeholders till June 6, 2025. The comments/ feedback may be submitted through the link under the 'Connect 2 Regulate' Section available on the Reserve Bank's website or may alternatively be forwarded to The Chief General Manager Business Conduct Group Department of Regulation, Central Office Reserve Bank of India, 12/13th Floor Shahid Bhagat Singh Marg Fort Mumbai – 400 001
