Unclaimed deposits in banks saw a significant increase of 26 per cent year-on-year (Representational)
Mumbai:
The Reserve Bank of India (RBI) has directed banks to take immediate steps to reduce the number of inoperative or frozen accounts and to make the activation process smoother and more hassle-free.
To achieve this, the RBI has advised banks to organize special campaigns focused on activating inoperative or frozen accounts.
Additionally, banks have been encouraged to facilitate Aadhaar updates for customers at branches that provide Aadhaar-related services. This initiative aims to assist account holders, particularly those from underprivileged sections of society, in reactivating their accounts with ease.
RBI said “The banks may also organise special campaigns for facilitating activation of inoperative/ frozen accounts. Besides, the banks may also facilitate Aadhaar updation for customers through the branches providing Aadhaar related services”.
It has also given separate instructions to State Level Bankers’ Committees (SLBCs) to proactively monitor the situation in their respective regions to minimize customer inconvenience.
Highlighting the importance of this measure, the RBI noted that many frozen or inoperative accounts belong to people from economically weaker sections.
The central bank urged banks to adopt an empathetic approach in handling such cases, ensuring that the process is simplified for these customers.
It added “the process of activation of such accounts smoother and hassle free, including by enabling seamless updation of KYC through mobile/internet banking, non-home branches, Video Customer Identification Process, etc”.
Furthermore, the RBI pointed out instances where accounts of beneficiaries under government schemes like Direct Benefit Transfer (DBT) or Electronic Benefit Transfer (EBT) were frozen due to pending or periodic KYC updates.
The central bank has instructed banks to segregate these accounts and ensure uninterrupted credit of DBT/EBT funds while addressing KYC-related issues efficiently.
These steps are part of RBI’s broader efforts to improve financial inclusion and reduce barriers for marginalized sections of society in accessing banking services. Banks have been urged to act urgently and ensure customer convenience in resolving account-related issues.
Unclaimed deposits in banks saw a significant increase of 26 per cent year-on-year, reaching Rs 78,213 crore by the end of March 2024.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
