Banking Regulation Act, 1949 – Section 26A Depositor Education and Awareness Fund Scheme, 2014 – Interest rates payable on unclaimed interest bearing deposit

Last updated: 12 May 2021

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The Reserve Bank of India has revised the interest rates payable on unclaimed interest-bearing deposits transferred to the Depositor Education and Awareness (DEA) Fund. Effective from May 11, 2021, banks will pay 3% simple interest per annum on these amounts. This update clarifies the calculation of interest, with specific rates applied for different periods prior to the new directive.

Reserve Bank of India RBI/2021-22/37 DoR.DEA.REC.No.16/30.01.002/2021-22 May 11, 2021 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-

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FAQ :

The new interest rate payable by banks on unclaimed interest-bearing deposits transferred to the DEA Fund is 3% simple interest per annum, effective from May 11, 2021.

Interest is calculated at 4% p.a. up to June 30, 2018, 3.5% from July 1, 2018, up to May 10, 2021, and 3% from May 11, 2021, until the time of payment to the depositor or claimant.

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, and Payments Banks are affected.

The scheme is established under Section 26A of the Banking Regulation Act, 1949, for the purpose of promoting depositor education and awareness.

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Notification No : RBI/2021-22/37 DoR.DEA.REC.No.16/30.01.002/2021-22
Published in Community & General
Source : https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=12091&Mode=0

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