Quick Summary
The Reserve Bank of India (RBI) has issued a circular emphasizing the need for commercial banks (excluding Regional Rural Banks) to address the growing number of inoperative accounts and unclaimed deposits. The move follows an analysis by the Department of Supervision that revealed a significant volume of such accounts, causing operational and customer service challenges. Key Highlights of the RBI Circular Annual Review and Segregation: Banks must conduct an annual review of accounts with
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FAQ :
The RBI has directed banks to streamline the handling of inoperative accounts and unclaimed deposits, making it easier for customers to reactivate their accounts and ensuring government benefits are not interrupted.
Banks must conduct annual reviews of accounts with no customer-induced transactions, segregate accounts used for scholarships and Direct Benefit Transfers (DBT), and simplify KYC updates through various channels like mobile banking and video identification.
The RBI wants banks to simplify account activation, address issues like name mismatches and outdated KYC, and organise special campaigns to help customers, especially those receiving government benefits.
Banks must submit quarterly reports on their progress in reducing inoperative accounts via the DAKSH portal, starting from the quarter ending December 31, 2024.
The Customer Service Committee (CSC) of each bank's board will oversee progress and monitor compliance with these new directives.
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