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    Question

    According to the RBI’s January 2024 circular, banks

    must implement a specific reporting framework for unclaimed deposits. Which of the following best describes the obligation of banks in handling unclaimed deposits that are over 10 years old but for which the account holder or their nominee contacts the bank after the funds have been transferred to the DEA Fund?
    A The bank is required to return the full amount of the deposit to the depositor upon request, including interest for the time the deposit remained with the DEA Fund. Correct Answer Incorrect Answer
    B The bank must file a request with the RBI to reclaim the funds from the DEA Fund and return them to the depositor within 30 days. Correct Answer Incorrect Answer
    C The bank must verify the claimant's identity and refund the deposit amount, but no interest is payable after the funds are transferred to the DEA Fund. Correct Answer Incorrect Answer
    D The bank must pay the depositor a partial refund based on the DEA Fund’s net annual performance. Correct Answer Incorrect Answer
    E The bank has no obligation to return unclaimed deposits once they have been transferred to the DEA Fund. Correct Answer Incorrect Answer

    Solution

    According to the "Unclaimed Deposits in Banks" circular, banks are obligated to verify the identity of the claimant and return the unclaimed deposit amount, but no interest is payable after the funds have been transferred to the DEA Fund.

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