Interest rate on unclaimed deposit
aditya sharma
(Querist) 27 May 2015
This query is : Resolved
Hello,
I have faced a crucial case on which i need your help. My mother had opened a FIXED DEPOSIT in 1991 OF THE AMOUNT 13000/-(MATURITY AMOUNT MENTIONED 17000) IN HER OWN NAME at her hometown and gave it to her grandmother. After some time my mother's grandmother expired and at that time nobody remembered about that FD.
A few months back my Mother's Uncle found that F.D. RECEIPT OF SBI IN OLD BOX. When we went to Bank the Bank is giving only 17000 saying that you had not renew the F.D.
I want your advice that it has been remained UNCLAIMED SINCE LAST 20 YEARS SO WHAT IS THE MINIMUM RATE IF INTEREST THAT WE CAN GET ON SUCH UNCLAIMED AMOUNT as a matter of prejudice the bank has channelized this fund in banking since last 20 years so we must get our share of minimum interest on such amount for 20 years.
please help.
ADV-JEEVAN PATIL, MUMBAI
(Expert) 27 May 2015
1) auto renewal is starte since last 20 years. Hence u cannot legally claim more interest for last 20 years
2) however u will get saving interest for the same.
Kumar Doab
(Expert) 28 May 2015
There is no dearth of arm chair and good for nothing bankers and banks that marvel in the coziness of their offices otherwise provided to serve the customers/claimants and serve like a faithful servant…………..
RBI is central bank and its guidelines have statutory force.
The banks have to formulate its policies in line with directives of RBI and place these on website and have to maintain in banks and make the certified copy available to customers/claimants/successors without any cost.
The BM and bank was under sworn duty to send communications thru Registered post and act proactively…………….and if none of the BM during these 20 years have acted then let them and bank pay thru its nose or thru their terminal benefits……………
For the deficiency you can pull them to DCDRF.
However prepare the case and build favorable written record preferably under expert guidance of a consultant well versed with consumer/banking matters..
You will find that there is well laid mechanism in which lot of bankers are involved and have to explain the action taken on record.
RBI has made scathing remarks on Banks and Bankers in its guidelines e.g:
Unclaimed Deposits / Inoperative Accounts in banks
https://www.rbi.org.in/commonman/English/scripts/Notification.aspx?Id=375
“Further, banks were also advised vide our circular no. DBOD.No.Leg.BC.45/C.466 (IV) / 89 dated November 15, 1989 that they should ensure that their branches follow-up accounts which remained inoperative for a year or so by sending suitable advices to the customers and if the said letters are returned undelivered, they may immediately be put on enquiry to find out the whereabouts of customers or their legal heirs in case they are deceased.
2……………………Moreover, there is a feeling that banks are undeservedly enjoying the unclaimed deposits, while paying no interest on it. Keeping these factors in view, we have reviewed the above instructions issued by us and advise banks to follow the instructions detailed below while dealing with inoperative accounts:
(ii) If the letters are returned undelivered, they may immediately be put on enquiry to find out the whereabouts of customers or their legal heirs in case they are deceased.
(xi) Interest on savings bank accounts should be credited on regular basis whether the account is operative or not. If a Fixed Deposit Receipt matures and proceeds are unpaid, the amount left unclaimed with the bank will attract savings bank rate of interest.
You may also go thru:
Master Circular
Interest Rates on Rupee Deposits
10 Unclaimed Deposits and Inoperative/ Dormant Accounts Page:9
11 Interest Payable on a Deposit Account of Deceased Depositor Page: 9
https://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/26MCINDE010713.pdf
aditya sharma
(Querist) 28 May 2015
Thank you so much Mr. Jeevan and Mr. Kumar Doab for your kind and concrete reply.
As you are persons of Strong Legal Background I just need a clarification from your side that whether any appeal of this matter in any court or statutory body shall be Barred by LIMITATION ACT.
WHETHER PERIOD OF LIMITATION WILL COMMENCE FROM EXPIRY OF F.D. i.e. 1993 OR FROM THE DATE ON WHICH BANK SEND US INTIMATION LETTER TO PICK DRAFT OF MATURITY AMOUNT OF Rs. 17000 (i.e. April, 2015).
Kumar Doab
(Expert) 28 May 2015
It should start from THE DATE ON WHICH BANK SEND US INTIMATION LETTER TO PICK DRAFT OF MATURITY AMOUNT OF Rs. 17000 (i.e. April, 2015)................as posted by you.
1. Record the verbal statement made by BM for payment of maturity amount only in presence of irrefutable witnesses (audio/visual).
2. Submit letter mentioning that on dated................BM Mr/Ms stated that bank shall be giving only 17000 saying that you had not renewed the F.D., while .................visited the bank alongwith Mr/Ms.........
Build some irrefutable evidence.
Such bankers are not fit to be left to loose around in a civilized society.
aditya sharma
(Querist) 30 May 2015
thanks for your reply Mr. Kumar...
Rajendra K Goyal
(Expert) 01 June 2015
Take up the matter with the higher officers of the Bank if Bank is not paying overdue interest.
T. Kalaiselvan, Advocate 
(Expert) 03 June 2015
After obtaining a reply in written refusing the payment of interest by the bankers, you may escalate the matter to its higher office or banking/ombudsman or may approach consumer forum for relief and remedy.
malipeddi jaggarao
(Expert) 05 June 2015
Approach the higher authorities and explain them that since the deposit is lying with them they are supposed to renew the same periodically or now notionally at different spells renewing for the period originally mentioned on the deposit receipt and pay the entire maturity value, otherwise you will approach the consumer court. If there is no response, serve a legal notice and file a case in consumer forum.
