Unclaimed deposits in banks rise by 27 pc to Rs 14,578 cr in 2018

Unclaimed deposits in the banking system have witnessed a jump of 26.8 per cent to Rs 14,578 crore in 2018, Parliament was informed on Monday.

The unclaimed deposits rose to Rs 11,494 crore in 2017 from Rs 8,928 crore in 2016, Finance Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.

State Bank of India (SBI) alone had an unclaimed deposit of Rs 2,156.33 crore at the end of 2018, she said.

With regard to the insurance sector, the minister said the life insurance sector reported unclaimed amounts of Rs 16,887.66 crore while non-life was Rs 989.62 crore at the end of September 2018.

"As far as unclaimed deposits in banks are concerned, in pursuance of the amendment to the Banking Regulation Act, 1949, and insertion of Section 26A in the said Act, RBI has framed the Depositor Education and Awareness Fund (DEAF) Scheme, 2014," she said.

In terms of the scheme, banks calculate the cumulative balances in all accounts which are not operated upon for a period of 10 years ..