May 11, 2021
The Managing Director & CEO/
Chief Executive Officers
All Scheduled Commercial Banks (including RRBs)
Local Area Banks (LABs)
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks/
Small Finance Banks/Payments Banks
Dear Sir/Madam,
Banking Regulation Act, 1949 – Section 26A
Depositor Education and Awareness Fund Scheme, 2014 –
Interest rates payable on unclaimed interest bearing deposit
Please refer to circulars DBOD.No.DEAF Cell.BC.126/30.01.002/2013-14 dated June 26, 2014 and DBR.DEA Fund Cell.BC.No.110/30.01.002/2017-18 dated June 07, 2018 wherein RBI had specified the rates of interest payable by banks to the depositors on the unclaimed interest bearing deposit amount transferred to the DEA Fund.
- 2. The rate of interest has since been reviewed and it has been decided that the rate of interest payable by banks to the depositors/claimants on the unclaimed interest bearing deposit amount transferred to the Fund shall be 3 per cent simple interest per annum with effect from the date of this circular.
- 3. Accordingly, all the banks are advised to calculate the interest payable on interest bearing deposits transferred to RBI at the rate of 4 per cent p.a. up to June 30, 2018, 3.5 per cent w.e.f. July 1, 2018 up to May 10, 2021 and at 3 per cent with effect from May 11, 2021 till the time of payment to the depositor/claimant.
- 4. The other contents of the circular dated June 26, 2014 remain unchanged. Yours faithfully,
Yours faithfully,
(Thomas Mathew)
Chief General Manager
For full detail click the link below :
https://www.dropbox.com/s/wm2qygjh3tkj5ya/Banking%20regulation%20act%2C%201949.PDF?dl=0