RBI has announced new rules to make it easier for people to reactivate old/inactive bank accounts or claim unclaimed money. RBI said that these new rules are active now with immediate effect.
Key Points regarding the guidelines:
- Customers can now update their KYC documents at any branch of the bank — not just the one where the account was opened (home branch).
- -Banks will provide the Video Customer Identification Process (V-CIP). This lets customers update KYC through a video call and branch visit is not required. This can be useful for senior citizens, people living in remote areas and NRIs (Non-Resident Indians).
- Bank should allow Business Correspondents (BCs) (local agents who help provide banking services in rural/semi-urban areas). They can help customers in rural or remote areas to update their KYC and reactivate inoperative accounts.
What Are Inoperative Accounts and Unclaimed Deposits?
A bank account is called inoperative if it hasn’t been used for 10 years or more and unclaimed deposits are funds that haven’t been claimed by the account holder for 10 years. This unclaimed deposit money is transferred to the Depositor Education and Awareness (DEA) Fund maintained by the RBI.
Why latest guidelines on inoperative accounts and unclaimed deposits is necessary?
- It will be easy for people to get back their money, especially in rural areas.
- It will reduce hassles for elderly or people living far from their home branches.
- It will encourages digital options like video KYC for convenience.
By introducing new guidelines RBI aims to enhance transparency, reduce idle funds, and improve customer service. As of data unclaimed deposits in banks crossed ₹42,000 crore. These guidelines aim to redirect such funds into productive financial systems.