Unclaimed FDs: Here’s What You Need to Know
NEW DELHI: Unclaimed deposits are quite common. People often fail to share crucial financial information with their family, including details about their accounts and deposits. After their death, family members are not aware of the investments and financial information of the deceased. Also, many depositors fail to track accounts and deposits for different reasons (job changes, multiple accounts, etc.). Unused savings bank accounts turn into dormant accounts. They can be reactivated after following the rules prescribed by the Reserve Bank of India (RBI). Proceeds from a dormant fixed deposit are transferred to the linked savings bank account. When these proceeds go unclaimed for ten years, the funds are transferred to the Depositors Education and Awareness Fund (DEAF), managed by the RBI.