Salem District Banks Hold Over ₹109 Crore in Unclaimed Funds for More Than a Decade
In a significant financial development, public and private banks in Salem district are currently holding more than ₹109 crore in unclaimed funds that have remained dormant for over 10 years. District officials have now intensified their efforts to trace the rightful holders of these accounts and facilitate the return of their money.
Nationwide Scale of Unclaimed Bank Deposits
This situation in Salem reflects a much larger national issue. Across India, an estimated ₹1.82 lakh crore is currently lying unclaimed in bank accounts. According to banking regulations, funds are classified as unclaimed if account holders forget about their deposits or, in cases where the account holder has passed away, their family members fail to come forward to claim the inheritance within a decade.
Salem's Proactive Campaign to Reunite Funds with Owners
To address this pressing matter locally, Salem Collector R Brindha Devi recently chaired a crucial meeting with bankers from the district. The primary objective was to devise effective strategies for identifying the holders of accounts containing unclaimed money.
"We have decided to conduct a two-phase campaign to identify the holders with unclaimed money in their accounts and return the amount," stated officials following the meeting. The specific amount identified in Salem district is ₹109.67 crore, highlighting the urgent need for this initiative.
Regulatory Framework and Reclaiming Process
Bank officials have clarified the regulatory procedures governing unclaimed funds:
- Money that remains unclaimed for 10 years is transferred to the Reserve Bank of India's Depositors Education and Awareness Fund.
- To reclaim these funds, account holders or their legal heirs must submit KYC (Know Your Customer) documents to their nearest bank branch.
- After thorough verification, the bank will release the funds to the legitimate account holder or, in cases of deceased holders, to their rightful heirs.
An official source emphasized, "The verification process is stringent to ensure that the money reaches only the legitimate claimants, thereby preventing any potential fraud or misappropriation."
Broader Implications and Public Awareness
This campaign in Salem is part of a broader effort to enhance financial literacy and ensure that citizens are aware of their dormant assets. The substantial sums involved underscore the importance of:
- Regularly monitoring bank accounts and updating contact information with financial institutions.
- Ensuring that family members are informed about bank holdings to prevent funds from becoming unclaimed after a holder's demise.
- Understanding the reclaiming process to efficiently recover any dormant funds.
The proactive steps taken by Salem district authorities serve as a model for other regions grappling with similar issues of unclaimed bank deposits across the country.
