RBI Issues Revised Operational Guidelines for Depositor Education and Awareness Fund Scheme [Read Notification]

The move is aimed at streamlining procedures related to the transfer and refund of unclaimed deposits and enhancing compliance and transparency in the process. The revised guidelines consolidate and replace earlier instructions issued by the RBI over the past decade.

Mandatory e-Kuber Registration

All banks covered under the DEA Fund Scheme, including scheduled commercial banks, small finance banks, payment banks, and cooperative banks, must register on the RBI’s e-Kuber platform. Registration is essential for facilitating monthly transfers of unclaimed amounts and processing refund claims. Banks are required to provide two authorised email IDs for communication with the RBI’s DEA Fund Cell.

Monthly Transfer of Unclaimed Deposits

Under the revised framework, banks must transfer all amounts that remain unclaimed for ten or more years, along with the applicable interest, to the DEA Fund during the last five working days of each month. Transfers must be made electronically through e-Kuber using a designated DEA Fund code. For non-member banks, sponsor banks will continue to process and report transfers separately.

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Refund Procedure

When depositors come forward to claim unclaimed balances, banks must first settle the payment and then file a refund claim with the RBI through Form II. Before making the refund, banks must ensure full KYC compliance and verify supporting documentation. RBI will credit validated claims to the bank’s account by the end of the same month.

Banks are required to retain granular, customer-wise data for audit and verification, although this data is not to be submitted to the RBI unless specifically requested.

Revised Return Filing Requirements

To enhance accountability and oversight, banks must adhere to strict reporting protocols:

• Form I: Monthly report on transferred unclaimed amounts.
• Form II: Monthly refund claims.
• Form III: Half-yearly reconciliation statements (March and September).
• Annual Certificate: Year-end audit certificate from the statutory auditor, to be submitted by September 30 each year.

All returns must be submitted in both physical and electronic formats (PDF via email) to the DEA Fund Cell at RBI.

Rectification Mechanism for Errors

In case of discrepancies in the transferred amounts or refund claims, banks must use the following forms:

• Form A: To correct errors in individual account details without altering the total.
• Form B: For errors affecting the total amount transferred.
• Form C: For excess refund corrections.

Each rectification request must be signed by two authorised officials and certified by the bank’s internal or concurrent auditors. Corrections must be submitted within two weeks of identifying the error.

Disclosures in Financial Statements

Banks will now be required to disclose amounts transferred to the DEA Fund under "Contingent Liabilities - Others" in Schedule 12 of their financial statements. Additionally, they must provide a reconciliation table showing the opening and closing balances, deposits transferred, and refunds processed during the year.

Interest Rates on Unclaimed Deposits

The revised guidelines also clarify the applicable interest rates on unclaimed interest-bearing deposits prior to transfer to the DEA Fund:

• Up to June 30, 2018: 4% per annum
• July 1, 2018 - May 10, 2021: 3.5% per annum
• From May 11, 2021 onward: 3% per annum

Interest must be calculated on a simple interest basis, as outlined in Annex IX of the notification.

Repeal of Earlier Circulars

With the issuance of this notification, RBI has rescinded seven earlier circulars related to the DEA Fund Scheme issued between 2014 and 2019. These included operational instructions on fund transfers, reporting, and refunds, which are now consolidated under this unified framework.

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