Home India Reserve Bank of India Banking Regulation Act, 1949 – Section 26A Depositor Educati...
Date: 2018-06-07 Category: Not Applicable State: Union Government Country: India

Banking Regulation Act, 1949 – Section 26A Depositor Education and Awareness Fund Scheme, 2014 – Operational Guidelines - Payment of Interest

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

**Summary:** This circular, RBI/2017-2018/191 DBR.DEA Fund Cell.BC.No.11/03.01.002/2017-18, issued by the Reserve Bank of India (RBI) on June 7, 2018, addresses the rate of interest payable on unclaimed interest-bearing deposit amounts transferred to the Depositor Education and Awareness (DEA) Fund. It revises the interest rate from 4% to 3.5% simple interest per annum, effective July 1, 2018. This rate applies to all claims received by banks on or after this date, until further notice. The circular is applicable to all Scheduled Commercial Banks (including RRBs), Local Area Banks (LABs), Urban Cooperative Banks, State Cooperative Banks, District Central Cooperative Banks, Small Finance Banks, and Payment Banks. All other conditions outlined in the circular DBOD.No.DEA Fund Cell.BC.12/630.01.002/2013-14 dated June 26, 2014, remain unchanged. Inquiries can be directed to the Department of Banking Regulation, Central Office, at 022-22700773 (Tel) or 022-22700773 (Fax), or via email at dboddeafcell@rbi.org.in. The issuing officer is Prakash Baliarsingh, Chief General Manager.

Key Entities Referenced

Reserve Bank: Refers to the Reserve Bank of India (RBI), the central bank of India. Banking Regulation Act, 1949: An act regulating banking companies in India. Depositor Education and Awareness Fund Scheme, 2014: A scheme related to unclaimed deposits and awareness programs. Scheduled Commercial Banks: All commercial banks in India that are listed in the Second Schedule of the Reserve Bank of India Act, 1934. RRBs: Regional Rural Banks in India. Urban Cooperative Banks: Cooperative banks located in urban and semi-urban areas in India. State Cooperative Banks: Cooperative banks operating at the state level in India. District Central Cooperative Banks: Cooperative banks operating at the district level in India.
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RBI/2017-2018/191 DBR.DEA Fund Cell.BCNo.110/30.01.002/2017-18 June 07, 2018 The Managing Director & CEO/ Chief Executive Officers All Scheduled Commercial Banks (including RRBs) Local Area Banks (LABs) Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks Small Finance Banks/Payment Banks Dear Sir/Madam, Banking Regulation Act, 1949 – Section 26A Depositor Education and Awareness Fund Scheme, 2014 – Operational Guidelines - Payment of Interest Please refer to the circular DBOD.No.DEA Fund Cell.BC.126/30.01.002/2013-14 dated June 26, 2014 on the captioned subject, wherein Reserve Bank had specified that the rate of interest payable by banks to the depositors/claimants on the unclaimed interest bearing deposit amount transferred to the DEA Fund shall be 4% simple interest per annum until further notice. 2. The rate of interest has since been reviewed and it has been decided that the rate of interest payable by banks to the depositors/claimants on the unclaimed interest bearing deposit amount transferred to the Fund shall be 3.5% simple interest per annum with effect from July 01, 2018. The settlement of all claims received by the banks on or after July 01, 2018 will be at this rate, until further notice. 3. The other contents of the circular dated June 26, 2014 remain unchanged. Yours faithfully, (Prakash Baliarsingh) Chief General Manager ब��कंग �व�नयमन �वभाग, क�द्र�य कायार्लय, 12वी ं और 13वी ं मंिज़ल, क�द्र�य कायार्लय भवन, शह�द भगत �सहं माग,र् मंबु ई 400001 टेल�फोन /Tel No: 022- 22700773 फैक्स/Fax No: 022- 22700773 Department of Banking Regulation, Central Office, 12th & 13th Floor, Central Office Bhavan, Shahid Bhagat Singh Marg, Mumbai – 400001 email: dboddeafcell@rbi.org.in Tel No:022- 22700773 Fax No: 022- 22700773

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