Mumbai: The Reserve Bank on Wednesday asked cooperative and regional rural banks to frame policies to locate customers with unclaimed deposits or inoperative accounts.

"On a review, with a view to further strengthen the regulatory framework for inoperative accounts and unclaimed deposits, state and central cooperative banks or regional rural banks are advised to put in place a board-approved policy on classification of unclaimed deposits, grievance redressal mechanism for quick resolution of complaints, record keeping, and periodic review of such accounts," RBI said in a circular.

RBI had given detailed instructions to these banks to deal with unclaimed deposits or inoperative accounts and had advised them to find the whereabouts of the customers or their legal heirs.

The central bank had also asked them for an annual review of such accounts, levy no charge for activation of inoperative accounts after due diligence.

However, it said, these banks have not been pro-active in tracking customers linked with unclaimed deposits or inoperative accounts.

In order to identify owners of such accounts with due diligence of KYC (know your customer) norms, RBI had also asked them to display list of unclaimed deposits or inoperative accounts which were inactive or inoperative for ten years or more on their websites by June 30, 2012.

The first periodic review of unclaimed deposits or inoperative accounts should be put up to their respective bank boards by September 30, 2012, RBI said.

(Agencies)

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