The Reserve Bank of India (RBI) has launched a one -year incentive scheme starting from 1 October, which aims to reduce inactive accounts and uncured funds. Under this scheme, banks will be given incentives, which will be based on the amount deposited in those accounts and the period of inactive, so that the banks actively approach the customers and restore their accounts and return the uncured amount to the right entitled.
Incentive
The bank will get an incentive to 5% or 5,000 rupees (which is low) on deposits with passive accounts for four years. This incentive will be up to 6% or 10,000 rupees on passive accounts for four to eight years. Eight to ten years of accounts will be encouraged up to Rs 7% or Rs 15,000. At the same time, this amount will be up to 7.5% or maximum of Rs 25,000 on passive accounts over ten years.
The scheme has been made to increase transparency in the banking sector and to secure the amount of depositors. The deposits that do not immediately claim the deposit are transferred to the DEA (Depositor Education and Awareness) fund, but customers can get this money back anytime. This scheme will strengthen the procedural right to withdraw the deposit amount, which will strengthen financial trust and inclusion.
Facility for customers
Customers can now do KYC updated video-KYC, any bank branch or business representative to reactivate their passive accounts. Banks will submit reports of claims taken on a quarterly basis to RBI which will be verified by senior management.