Banking · Banking Regulations
Under the RBI guidelines for Inoperative Accounts and Unclaimed Deposits, if a fixed deposit has been transferred to the Depositor Education and Awareness Fund (DEAF) due to inactivity, what is the operational process for a bank to execute a refund to the verified customer?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The customer must file a legal petition in the High Court to recover funds once they are moved to DEAF.
- 2The bank can only refund the principal amount as the accumulated interest is completely forfeited under DEAF rules.
- 3The bank must verify the customer's KYC, pay the principal along with applicable interest from its own funds, and subsequently claim a reimbursement from the RBI.✓
- 4The bank must advise the customer to contact the Reserve Bank of India directly for reclamation.
Correct answer
The bank must verify the customer's KYC, pay the principal along with applicable interest from its own funds, and subsequently claim a reimbursement from the RBI.
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