Right now everyone has a bank account. Many individuals today maintain a bank account, which serves a crucial function in managing finances. Banks not only help organize our money but also provide opportunities for investing our savings wisely. However, the Reserve Bank of India has established several regulations governing the operation of bank accounts.
Often, customers may refrain from making transactions in their accounts for extended periods. According to these regulations, if an account remains inactive for several years, the funds within it are classified as unclaimed.
In such cases, the bank is required to transfer these unclaimed funds to the Depositor Education and Awareness Fund (DEAF). The Reserve Bank of India has reported a consistent increase in the volume of unclaimed amounts each year.
If an account experiences no transactions for two years, it will be deactivated. Furthermore, if there is inactivity for eight years, the funds in that account are deemed unclaimed and subsequently transferred to the DEAF. However, even if your account has been deactivated, you still have the right to withdraw the funds that were deposited in it.
How to withdraw money from these accounts
1. Check your account status – First, you need to see if your bank account is marked as dormant. You can do this by visiting your bank’s website. According to RBI guidelines, banks are required to list details of unclaimed funds from these accounts online.
2. Fill out the claim form – If you find your account listed under unclaimed amounts, head to your local branch and complete the claim form. Don’t forget that KYC is also a must.
3. Apply as a nominee – If the account with unclaimed funds isn’t yours and you’re just the nominee, you’ll need to provide your ID proof and the account holder’s death certificate along with the claim form.
4. Bank verification – Once you’ve done all this, the bank will verify everything. If everything checks out, you’ll receive the full amount from the account.