A staggering $ 9,500 crore of unclaimed annuities lies with public sector banks (PSB), as on December 31, 2017, according to Central Bank data. Similarly, 50 crores of rupees in total have been held for more than 10 years by public insurance companies (35.23 crores of rupees) and general insurance (15.67 crores of Rs). as of September 30, 2017, reported IRDAI.
Deposits unclaimed by state banks for less than 10 years are credited to the Depositors Education and Awareness Fund, according to the DEAF mechanism.
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In the same vein, the unclaimed amount in public-sector insurance companies and insurance companies, each year for more than ten years, is transferred to the Provident Fund for seniors on or before March 1 of each year.
Lenders are obligated to pay the unclaimed amount to the depositor or claimant and claim the refund from DEAF.
Understand unclaimed deposits
Bank accounts or deposits inoperative for 10 years or more are classified as unclaimed deposits. The interest rate of a savings bank is obtained by the product at maturity of these deposits. The account is credited regardless of whether it is operational or not.
At the same time, bank deposits grew more than 10 percent year-over-year during the fortnight ended February 15 for the first time in almost a year and a half, according to data released by the RBI. As on February 15, the value of deposits with banks amounted to 121.21 million rupees, an increase of 10.16% year on year.