RBI launches scheme to speed up settlement of inoperative accounts, unclaimed deposits

Current Context: The Reserve Bank of India (RBI) launched a special one-year scheme effective from 1 Oct 2025 to 30 Sept 2026 to speed up settlement of inoperative accounts and unclaimed deposits.

• The scheme aims to reduce the large stock of unclaimed deposits (over ₹67,000 crore as of June 2025) and ensure faster return of money to rightful claimants.
• Banks will receive incentives between 5%–7.5% of the settled amount, capped at ₹25,000, depending on how long the account has been inactive.
• For deposits unclaimed for over 10 years, banks can claim the highest incentive.
• They must submit quarterly claims to RBI, which will be settled within 30 days.
• The scheme is linked to the Depositor Education and Awareness (DEA) Fund framework.
• It is expected to both clear old backlogs and prevent future accumulation of unclaimed deposits.

Question:

Q.1 Under the RBI’s Special One-Year Scheme for Settlement of Inoperative Accounts and Unclaimed Deposits (2025–26), banks will receive incentives between:
a) 2% – 4%
b) 3% – 5%
c) 5% – 7.5%
d) 7.5% – 10%

Answer: c) Incentives to banks will range from 5% to 7.5% of the settled amount depending on how long the account has remained unclaimed.