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My Little Success Story with RBI


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  • Super Moderator
ganpat1956

Good work Sidharth. Like the dormant accounts in banks, the LIC is holding thousands of crores of unclaimed premium remittance of deceased persons. Years ago I had come across an article in one of the news papers about this, though I dont remember the full details at this point of time. Let us do something about these as well.

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Thanks Ganpat & Kushal.

 

Regarding LIC, I have heard about it. Since I was preoccupied with this dormant account issue, I could not find time for the same. Now it's time to look into that too as suggested by you.

 

Btw I have posted the main replies of RBI for members to see.

 

CPIO_RBI_Reply_ON_Dormant_Accounts_1

 

CPIO_RBI_Reply_ON_Dormant_Accounts_2

 

There are several other documents as mentioned in the reply. They are all available at RBI Website. So I am not posting them here.

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Thanks a lot for the perseverence and efforts in public interest. However, circular from RBI is first step. We have to see what is done at the branch level. My 31 year experience in bank shows that H.O. reiterates RBI circulars and branches just file it out. They do not have time even to follow up loan defaulters, they will not follow dormant deposit account holders. After a month or two we can ask for action taken report for few main branches of some banks in the country and just activate ground zero. I will try few bank branches.

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However, circular from RBI is first step. We have to see what is done at the branch level.

Thanks JPS. You are absolutely right on that.

 

RBI circular is a begining. This issue should be pursued at various level. I think there are many more RTIs left to be filed in the coming months to see the results.

 

I will try few bank branches.

 

First start from the state level & then come down to branch level.

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Sidharth, the same thing is with the Postal Deposit also. whether the RBI circular is applicable for Postal Department?

I don't think so. Postal dept. have their separate rules for Savings and other accounts.

 

This is a news to me and worth pursuing further.

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Sidharth - This is very inspiring...keep the good work going.

If possible, we should have a folder within this website to refer to the RTI success stories, esp. the ones that have a wider appeal/impact.

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  • Super Moderator

As reported by PTI in business-standard.com on 11 September 2008:

Banks sitting on Rs 1,200 cr in idle a/c

 

Banks sitting on Rs 1,200 cr in idle a/c

 

Commercial banks in the country are sitting on funds of over Rs 1,200 crore lying idle in about two crore accounts for the past 10 years.

 

This is despite a circular issued by the Reserve Bank of India in November 1989 instructing banks to trace customers or legal heirs of the unclaimed accounts. The disclosure was made in reply to an RTI plea filed by Sidharth Misra, a resident of Cuttack, Orissa.

 

The reply said that an amount of Rs 1207,35,54,334.23 is lying idle with banks across India. This unclaimed amount belongs to 1,74,38,100 account-holders. According to the RBI reply, the quantum of unclaimed deposit is highest in the rural regional banks. It comes to Rs 1156,98,70,277.68.

 

“The banks take this order in letter, not in spirit, and wash their hands off by sending a simple letter to the account-holder,” an RBI official said on the condition of anonymity.

 

Misra, who said he had filed the RTI after many widows in Cuttack had complained that the banks were reluctant to give them their rightful dues, said, “This huge quantum of money is lying idle with the banks and will remain idle in the near future because the right heir to this money is not aware of it,” Misra said.

 

Nationalised banks account for the highest unclaimed amount, totalling Rs 794,17,41,124.18. The number of idle accounts in these banks in the past 10 years is 72,45,581.

 

“The bank should take serious note of these account-holders who do not fill up the nominee category in the bank forms. Despite rules which make it compulsory to fill the nominee form, many banks do not insist and then, when the account holder disappears/dies, the money stays with the bank for an indefinite period,” Misra reasons. The data given by RBI enumerates 10 years starting from the year 1996-2006.

 

“Claiming such money is a tedious task. There are a lot of procedures and formalities such as proving identity and sifting through old data which deters the genuine claimant of her/his legitimate money.

 

“Moreover, if the amount is equal to the fine charged by the bank, there is no point claiming such money,” a senior bank official said.

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Our member friend Sidmis has achieved major success in seeking information under RTI.

 

It is big issue, so big that atleast five news portals have given prominant place to the news.

 

The success is mainly due to RTI Act. But more due to perseverence and hard work put in by Sidmis.

 

I am proud of being member friend of him as he has done it without having any personal gain at stake.

 

Well done Sidmis ! Please keep it up.

 

rajub

 

The news links are given below:

 

http://www.livemint.com/2008/09/10155128/Banks-sitting-on-Rs1200-cr-ly.html

http://www.financialexpress.com/news/Banks-sitting-on-Rs-1-200-cr-lying-in-idle-accounts/359713/

http://www.businessworld.in/index.php/Economy-and-Banking/Banks-Sitting-On-Rs-1200-Cr.html

http://www.hindu.com/thehindu/holnus/006200809101660.htm

http://www.thehindubusinessline.com/blnus/17101620.htm

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  • Super Moderator

Raju,

 

The links given are not opening correctly (they open the rediff page).

Can you please post the correct links.

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Thanks Raju for your kind words. :)

 

Happy to see you active again in this forum.

 

Actually the figures in all these news clips are grossly under reported.

 

The links given are not opening correctly (they open the rediff page).

Karira, These links posted by Raju are opening properly. I find no problem there. Though it's taking extra time to resolve.

 

Sidharth

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sidhartha,

 

the attached pic was published in our local news paper (Amar Ujala) on 11/09/2008.

 

it was also published in Danik Jagran but the copy is not traceble to me. soon i find the copy of Danik Jagran i will upload it also.

16092008176.jpg

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Ralph Frammolino

This is a very inspiring story! May I contact you further on this? I'm a visiting professor at the Indian Institute of Journalism & New Media and will be on a panel next Saturday to discuss the RTI. Thanks....

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  • Super Moderator

As reported in thehindubusinessline.com on 21 September 2008:

The Hindu Business Line : Dormant accounts’ interest liability reaches Rs 13 crore

 

Dormant accounts’ interest liability reaches Rs 13 crore

 

NEW DELHI: Indian banks, which are sitting on unclaimed funds to the tune of Rs 1,200 crore over the last ten years, owe clients over Rs 13.46 crore in interest.

 

It has come to light that most rural and regional banks are ignoring the Reserve Bank of India's order of paying 3.5 per cent savings bank rate of interest on inoperative accounts and matured fixed deposits.

 

The RBI, in response to an RTI application filed by one Mr Siddarth Misra of Orissa, said that the interest dues of the rural regional banks, in case of unclaimed/inoperative accounts, works out to be Rs 1.91 crore

 

“While scanning the consolidated statement of unclaimed deposit accounts of regional rural banks which have not been operated for the past ten years, I noticed that the interest column is completely blank in case of majority of the regional rural banks,” mr Misra said.

 

For example, the amount deposited to the tune of Rs one crore in a Gramya Bank in Bhubhaneshwar does not earn any interest. Whereas for one bank in Punjab Rs 3,222 earns an interest of Rs 1,000. The calculations of the figures given in the RBI reply to an RTI show that banks have a liability of Rs 13.46 crore towards about two crore dormant account holders.

 

“This is subject to the condition that the claimants of these dormant accounts approach the concerned bank. If this option is not exercised, the respective banks stand to gain the benefit of interest on accumulated money,” a bank official said. - PTI

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  • 1 month later...

hi friend thanks to you for your shearing.

me also start my savings and my business current account in RBI they are providing good services and simple and more benefit plans.

---------------

shanker

xxx@yyy.zzz

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Dear Mr. Sidharth, I came to know from my bank manager friends of two public sector banks that they have received circular on dormant accounts from their H.O. and they are trying to contact the old depositors. Thus it has reached ground-zero.

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  • 2 months later...
sandeepbaheti
This is a major major success in the similar lines i will file a RTI application for Lokautha siesed property in karnataka

All the best for your endeavours. Do keep us updated.

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  • 1 year later...

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