FSDC for a special drive to help people get unclaimed deposits

Union Finance Minister Nirmala Sitharaman chairs the 27th Financial Stability and Development Council (FSDC) meeting, in New Delhi on May 8, 2023.
| Photo Credit: ANI

High-powered Financial Stability and Development Council (FSDC) headed by Finance Minister Nirmala Sitharaman on May 8 underlined the need of launching a drive to help people get their unclaimed deposits in banks and other financial institutions.

Briefing reporters about the discussions in the meeting, Economic Affairs Secretary Ajay Seth also said there is no spillover effect of the failure of American banks on the Indian financial system, which is “well protected”.

The 27th meeting of the FSDC was attended by all financial sector regulators, including RBI Governor Shaktikanta Das.

The secretary also said there was a view that the government should expedite the required legislative changes to give effect to the proposals announced in the Union Budget.

On the unclaimed deposits matter, Mr. Seth said the FSDC was of the view that a drive should be undertaken to ensure people get their unclaimed deposits lying with financial institutions.

About ₹35,000 crore unclaimed deposits as of February 2023 were transferred to the Reserve Bank by public sector banks (PSBs) in respect of deposits, which have not been operated for 10 years or more.

These unclaimed deposits belong to 10.24 crore accounts transferred to the RBI as of the end of February 2023.

Last month, the Reserve Bank Governor said that a centralised portal would be ready in three to four months wherein depositors and beneficiaries can access details of unclaimed deposits across various banks.