1. DEAF scheme
  2. Committee of DEAF Account and Its Functions
  3. Fund transfer from Non-operative accounts
  4. Provision for a refund of the quantity, if claimed by the investor
  5. A Committee established to manage DEAF

DEAF scheme

DEAF stands for Depositor Education and Awareness Fund. This scheme is introduced by RBI in 2014. It’s introduced for the unwanted funds of depositors. In alternative words, any quantity lying with bank unclaimed for 10 or more than 10 years is needed to be attributable to Depositor Education and Awareness Fund theme, 2014

Committee of DEAF Account and Its Functions

Committee of the DEAF has the role of deciding that however the quantity of cash may be utilized, and in every meeting, the chairman and also the third of total members of the committee arranges a gathering, and every one the funds are utilized for the promotion of the depositor’s interest as nominative by the Federal Reserve Bank of India. The committee also will offer info to run quarterly, and there are some steps for the committee and its functions as follows:

  • DEAF are managed by the pinnacle committee of the Deputy Governor of Federal Reserve Bank of India
  • There are six members within the committee
  • The committee can advise run regarding the rate that ought to be paid to the depositing bank for the funds from the banks
  • At least once in a very quarter amount the committee can have a gathering for discussion
  • Quorum for every meeting ought to be a minimum of chairman and third of its total members
  • Funds ought to be utilized for the promotion of depositors
  • Committee can have functions for the aim which will be nominative by RBI from time to time
  • Committee ought to list all the activities

Fund transfer from Non-operative accounts

A specific account is maintained by RBI for the Investor Education and Awareness Fund (DEAF). RBI has directed the subsequent kinds of amounts to be transferred to the current fund.

  • The credit balance of any time deposit account that’s maintained with the banks and has not been operated for 10 years or a lot of.
  • Any quantity remaining unwanted for 10 years or a lot of.

RBI will specify the other accounts on the far side those listed higher than, from time to time. The quantity to be transferred additionally includes the accumulated interests that the bank would have paid to the client.

As per the RBI circular dated 02 February 2015, banks must show on their websites, the list of unwanted deposits/inoperative accounts that are inactive or inoperative for quite ten years. This activity must be administrated each month by the banks and also the unwanted amount is transferred to RBI by the top of every month.

Provision for a refund of the quantity, if claimed by the investor

The DEAF theme provides the choice for depositors to reclaim the quantity, even when it’s been transferred to DEAF.

  • The depositors will check the main points of the inoperative accounts/unclaimed quantity transferred to DEAF on the website of several banks.
  • The applier is needed to go to the bank branch and submit the unwanted Deposits form of several banks.
  • Required KYC details are to be stocked with that function proof of the account and also the quantity being claimed.
  • After verification of the claims, banks will transfer the claim to the shoppers so file for a refund from run to the extent of the quantity claimed by the shoppers. 
  • Any interest owed from the fund on a claim can accrue from the date on that the quantity was transferred to the fund to the date of payment to the client and is proscribed to those accounts that the interest was owed by the bank.
  • In case solely partial quantity is claimed, the account is revived and created operative. The entire quantity is transferred back to the currently operative account in conjunction with the interest if any. The bank will claim a refund for the entire quantity in conjunction with interest.
  • In the case of banks below liquidation, the investor will submit the claim to the liquidator. If the deposits are lined below DICGC Insurance, DEAF can pay the liquidator the quantity that might be claimed from DICGC. Even for the amounts that don’t seem to be lined by DICGC, the fund will reimburse the liquidator for any quantity being paid to the investor.
  • For any claims that are settled by the banks throughout a month, the compensation request is to be submitted on the last date of the sequent month.

A Committee established to manage DEAF

  • RBI’s notification regarding the constitution of the DEAF theme, provides for the formation of a committee to administer and manage the DEAF.
  • Except for the ex-officio president, the remainder of the committee hold the workplace for an amount of 2 years. They continue in their position till the successors are nominated.
  • Any retiring member is eligible for re-nomination.
  • The committee will represent sub-committees as deemed necessary.
  • Any call or proceedings would be thought of invalid if there’s a vacancy within the committee.
  • RBI provides for a Secretariat for the committee in conjunction with the specified infrastructure and workforce. Out of the members, the sphere consultants and also the representative of the customers are entitled to remuneration.