New Delhi: The Modi government is expected to introduce a Bill in the Parliament this week in regards to amend banking laws to allow up to four nominees in deposit accounts. Current laws allow only one nominee for savings bank and fixed deposits. The Bill to be tabled would seek to raise the nominees.
It is being said that the Union Cabinet on August 2, 2024 gave its green signal to around half-a-dozen amendments to banking laws.
Reports suggest that the Union Cabinet on 2nd August approved the introduction of Banking Laws (Amendment) Bill 2024. However, there is no official confirmation on this. Meanwhile, reports claimed that the Bill is expected to bring alterations in some banking laws related to increasing the number of nominees in a bank account and change in the dates of monthly reporting, and other changes.
As per the RBI Annual Report released in May end, Unclaimed deposits with banks reported a 26 per cent surge year on year to Rs 78,213 crore at the end of March 2024. The amount with the Depositor Education and Awareness Fund stood at Rs 62,225 crore at the end of March 2023.
The data showed that banks including cooperative banks transfer unclaimed deposits of account holders lying in their accounts for 10 or more years to RBI’s Depositor Education and Awareness (DEA) Fund.
UDGAM
UDGAM refers to Unclaimed Deposits-Gateway to Access inforMation. It is an online portal developed by RBI for facilitating the registered users to search unclaimed deposits/accounts across multiple banks at one place in a centralised manner.
UDGAM portal has all the information regarding all unclaimed deposits/accounts that are part of Depositor Education and Awareness (DEA) Fund of RBI.
“The UDGAM portal facilitates only (a) the search of unclaimed deposits/accounts across multiple banks at one place and (b) provides information on claim/settlement process of each bank (which will be available in the search result). The unclaimed deposits can be claimed only from the respective bank,” the RBI has said.
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