Interest rate on unclaimed deposit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2015 Hello,
I have faced a crucial case on which i need your help.

My mother had opened a FIXED DEPOSIT in 1992 OF THE AMOUNT 13000/-(MATURITY AMOUNT MENTIONED 17000) IN HER OWN NAME at her hometown and gave it to her grandmother. After some time my mother's grandmother expired and at that time nobody remembered about that FD.

A few months back my Mother's Uncle found that F.D. RECEIPT OF SBI IN OLD BOX. When we went to Bank the Bank is giving only 17000 saying that you had not renew the F.D.

I want your advice that it has been remained UNCLAIMED SINCE LAST 20 YEARS SO WHAT IS THE MINIMUM RATE IF INTEREST THAT WE CAN GET ON SUCH UNCLAIMED AMOUNT as a matter of prejudice the bank has channelized this fund in banking since last 20 years so we must get our share of minimum interest on such amount for 20 years.

please help.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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27 May 2015 As per my knowledge, you will receive only 17,000/-

It is depositor duty to get back the amount, when it matured. You cannot blame the bank for your mistake.

While, opening the deposit, in case you selected the auto renewal option, then you can fight for interest for entire 20 years.

In the case of non-selection of auto-renewal, you cannot demand the interest for 20 years. It is your mistake.

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2015 thanks for reply Mr. Shiva,

let me bring your attention towards RBI NOTIFICATION TO ALL COMMERCIAL BANKS : RBI/ 2008-09 / 138 DATED : AUGUST 22 , 2008.

As per point 2 (xi) of the said notification If a Fixed Deposit Receipt matures and proceeds are unpaid, the amount left unclaimed with the bank will attract savings bank rate of interest.

https://www.rbi.org.in/commonman/English/scripts/Notification.aspx?Id=375

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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28 May 2015 Sir,
I'm answering based on my practical knowledge rather than theoretical knowledge.

Because, I'm the TDS consultant to the Indian Overseas Bank. I know, how these banks works and how the employees respond. IOB and SBI both are nationalised bank and it works on same platforms. So, as per my knowledge (I clearly mentioned in my post) you will receive only 17,000/-

Let, comes to your posting. RBI Circular addressing to all banks. Now, in your case, to whom you will give a complaint? In case, you want file complaint with branch, they will ask you to file complaint with Regional branch. In case, you visit the same, they ask you to file in the concerned branch.

Most of the cases, you will receive the answer that, "I recently transferred to this branch. I dont know the details of your case. Probably, earlier officer knows better than me. Please you visit the earlier officer" Where, you find the earlier officer?

The second likely answer, you may be get "now our branch will fully computerised and we don't kept 20 years back physical records. I don't know, where is the records. Therefore, we are unable to rectify the mistake"

Most of the branches now fully computerised and they maintains up to(may be) 5 years records. Remining records may be shifted into godowns. Because of space problem. Where, you will find the records? Who have time to attend your quiery?

Now, every officer of the branch assigned separate duties and they have to work by using their user id and password. While attending your quiery, simultaneously they should perform their routine duty also. Because, computer will record the every action done by the employee. Who, is the officer devote their time to solve your quiery?

In addition to above, in case you are thinking to knock legal door, as per the limitation act, the maximum period to sue is (I think) 3 years. But, in your case, the elapsed time period is 20 years. None of the courts will accept your petition.

Even you taken these are all as challenge and overcome successfully also, you may be get interest on post circular period only and not before that.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2015 thanks for reply Mr. shiva

Can u plz give me a reference to Limitation Act. I mean Limitation Period will commence from the expiry period of F.D. OR THE DATE ON WHICH BANK SEND US INTIMATION (I.E. ONE MONTH BACK ONLY APRIL,2015) TO TAKE DRAFT OF MATURITY AMONT OF Rs. 17000

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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28 May 2015 I think,you will get answer from this link..
http://www.legalservicesindia.com/article/article/condonation-of-delay-and-law-of-limitation-543-1.html

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