Section 26A of The Banking Regulation Act, 1949 in hindi
Establishment of Depositor Education and Awareness Fund.
1[26A. Establishment of Depositor Education and Awareness Fund.--(1) The Reserve Bank shall establish a Fund to be called the Depositor Education and Awareness Fund (hereafter in this section referred to as the Fund).
- (2)There shall be credited to the Fund the amount to the credit of any account in India with a banking company which has not been operated upon for a period of ten years or any deposit or any amount remaining unclaimed for more than ten years, within a period of three months from the expiry of the said period of ten years: Provided that nothing contained in this sub-section shall prevent a depositor or any other claimant to claim his deposit or unclaimed amount or operate his account or deposit account from or with the banking company after the expiry of said period of ten years and such banking company shall be liable to repay such deposit or amount at such rate of interest as may be specified by the Reserve Bank in this behalf.
- (3)Where the banking company has paid outstanding amount referred to in sub-section (2) or allowed operation of such account or deposit, such banking company may apply for refund of such amount in such manner as may be specified by the authority or committee referred to in sub-section (5).
- (4)The Fund shall be utilised for promotion of depositors' interests and for such other purposes which may be necessary for the promotion of depositors interests as may be specified by the Reserve Bank from time to time.
- (5)The Reserve Bank shall, by notification in the Official Gazette, specify an authority or committee, with such members as the Reserve Bank may appoint, to administer the Fund, and to maintain separate accounts and other relevant records in relation to the Fund in such forms as may be specified by the Reserve Bank.
- (6)It shall be competent for the authority or committee appointed under sub-section (5) to spend moneys out of the Fund for carrying out the objects for which the Fund has been established.]
Summary
- The Reserve Bank is required to establish a specific fund known as the Depositor Education and Awareness Fund.
- Any account balance or deposit that has remained unclaimed or inactive for more than ten years must be credited to this Fund.
- Banks must transfer these unclaimed amounts to the Fund within three months after the ten year period of inactivity expires.
- Depositors still have the right to claim their money from the bank even after the funds have been transferred to the Fund.
- If a bank pays a claimant or allows them to use the account after the transfer, the bank can apply for a refund from the Fund.
- The Fund's money is used specifically to promote the interests of depositors and other purposes decided by the Reserve Bank.
Practical examples
FAQ
1. What happens to money that is unclaimed for 10 years under Section 26A of The Banking Regulation Act, 1949?
Under Section 26A of The Banking Regulation Act, 1949, any amount unclaimed for ten years must be transferred to the Depositor Education and Awareness Fund established by the Reserve Bank.
2. Can I still get my money back after it goes to the Fund mentioned in Section 26A of The Banking Regulation Act, 1949?
Yes, Section 26A of The Banking Regulation Act, 1949 explicitly states that a depositor can still claim their deposit or operate their account even after the ten year period has passed.
3. Who manages the Fund created under Section 26A of The Banking Regulation Act, 1949?
The Fund is administered by an authority or committee specified by the Reserve Bank through a notification in the Official Gazette as per Section 26A of The Banking Regulation Act, 1949.
Test yourself
1.Under Section 26A of The Banking Regulation Act, 1949, how long does a bank have to transfer unclaimed money to the Fund after the ten year period expires?
2.Under Section 26A of The Banking Regulation Act, 1949, what is the primary purpose of the Depositor Education and Awareness Fund?
3.Under Section 26A of The Banking Regulation Act, 1949, if a bank pays a depositor whose money was already moved to the Fund, what can the bank do?
4.According to the combined rules of Section 26 and Section 26A of The Banking Regulation Act, 1949, which statement is true about unclaimed deposits?