What is Bank Depositor Education and Awareness Fund Scheme?

There are numerous instances in India, like someone did FD in banks without sharing details with his family. Suddenly if that particular person dies, the obvious result is no one will come to know about such FD and will be with Bank forever. But what if one fine day his family members come to know about such asset ? How to approach Bank and get that amount back?

Bank Deposit

To avoid such complications RBI recently come up with scheme called Depositor Education and Awareness Fund Scheme, 2014. Let us know about this and how this is useful especially in above said cases.

All Banks need to deposit the amount with RBI in this scheme. But how much and from where they need to deposit is guided and is as below.

“the amount to be credited to the Fund shall be the credit balance in any deposit account maintained with banks which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more”. So it is clear that any amount lying with bank unclaimed will be credited to Depositor Education and Awareness Fund Scheme, 2014.

Accounts that include are as below.

  • Savings bank deposit account
  • fixed or term deposits
  • cumulative/recurring deposit accounts
  • current deposit accounts
  • other form of deposit account in any form and with any name
  • cash credit accounts
  • loan accounts after due appropriation with banks
  • margin money against issue of letter of Credit/Guarantee etc. or any security deposit
  • outstanding telegraphic transfer
  • DDs, pay orders, bankers cheques, sundry deposit account
  • unadjusted NEFT credit balances or other such transactions
  • unreconciled credit balances on account of ATM transactions
  • undrawn balance in any prepaid card

or any other amounts which may be specified by RBI from time to time.

So any type of balance which mentioned above idle for ten or more years with bank will be transferred to this scheme. Such collected amount will be invested by RBI and used for spreading the depositor education and awareness about dealing with such issues.

Now once this amount is transferred then how an individual can claim this and get back?

If you claim such unclaimed amount then bank have to give it back to customers. But customers will not get any interest from this scheme. So it is clear that RBI came with this idea to protect the depositors interest. Banks deposit this amount with RBI and in return RBI will take of such unclaimed amount.

Why such complications arrive?

It is mainly due to not sharing the financial transactions with family. There are many instances that mainly female members of family not aware about any financial dealings of male members. This is turn out to be disaster for survival members if the main earning person dies without sharing such information or having a proper WILL.

To avoid such complications, it is always advisable to file all your financial deals in a proper manner. Share such information with your family members like how and when they can access these most important information.

Hope this will be helpful and make you aware about your financial transactions and safe keeping.

Image courtesy of [Stuart Miles] / FreeDigitalPhotos.net


  1. ThrilokThrilok says

    Nice information Sir… provided the info very precisely and also understandable to any person. You put a great effort to make this info reach to us. Thanks you very much.

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