Test Blueprint & Topic Weightage
| Section / Topic | Question Range | Difficulty Level |
|---|---|---|
| DEA Fund – Establishment & Legal Basis | Q1 – Q4 | Easy to Medium |
| Scope and Fund Transfer Rules | Q5 – Q7 | Medium |
| Claims Process and Liquidation Rules | Q8 – Q12 | Hard |
⚠️ Examiner Trap Alert: A common examiner trick is confusing students on the claim time limit. Students often mistakenly assume there is a strict 3-year or 10-year limit to claim a refund from the DEA Fund, but legally, there is absolutely NO specific time limit for a depositor to claim their money back.
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✅ | DEA Fund – Establishment & Legal Basis
Q1Under which section of the Banking Regulation (BR) Act, 1949, was the Reserve Bank of India (RBI) empowered to formulate "The Depositor Education and Awareness Fund (DEA Fund) Scheme, 2014"?Q2Which of the following types of amounts are credited to the DEA Fund, if they remain unclaimed for 10 years or more?Q3What is the minimum period an amount must remain unclaimed or a deposit account must be inoperative, for the funds to be transferred to the Depositor Education and Awareness (DEA) Fund?Q4When did the Depositor Education and Awareness (DEA) Fund Scheme, 2014, come into effect?
✅ | Scope and Fund Transfer Rules
Q5After remaining unclaimed for 10 years or more, all of the following amounts are credited to the DEA Fund EXCEPT:Q6When are banks required to transfer the credit balances from 10-year inoperative or unclaimed accounts to the DEA Fund?Q7When a bank transfers the amount from a 10-year unclaimed deposit to the DEA Fund, what happens to the interest accrued on that deposit?
✅ | Claims Process and Liquidation Rules
Q8Consider the following statements:Q9There is ...... prescribed in the Scheme for a customer/depositor for claiming a refund from the DEA Fund.Q10In the event that a bank is under liquidation, who should a depositor approach to claim their unclaimed deposit amount that was previously transferred to the DEA Fund?Q11For a bank under liquidation, if a customer's deposit was covered by DICGC at the time of transfer to the DEA Fund, how does the Liquidator handle the claim (up to the insured amount)?Q12For a bank under liquidation, if a DICGC-insured deposit claim (e.g., 6 lakh) is more than the DICGC insurance cover (e.g., 5 lakh), how is the amount in excess of the cover (e.g., 1 lakh) handled?
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High-Yield Core Concepts
Legal Foundation
The scheme is legally empowered by Section 26A BR Act, 1949, giving RBI the authority to manage long-term dormant funds.
The 10-Year Rule
Credit balances, including DDs and Vostro accounts, become Unclaimed Deposits and must be transferred to the DEA Fund after 10 years of inoperation.
Transfer Value
Banks are required to transfer the entire amount—meaning the principal plus all accrued interest up to the date of transfer.
Bank Liquidation Handling
A Liquidator DICGC Claim is made by the liquidator on behalf of the customer up to the insurance cover limit; anything exceeding the cover is strictly claimed on a reimbursement basis.
Semantic Comparison
| Feature / Metric | DEA Fund Scheme | DICGC Insurance |
|---|---|---|
| Core Definition | A repository for deposits unclaimed for 10+ years | An insurance cover protecting deposits in case of bank failure |
| Primary Use Case | Promoting depositor awareness and holding dormant funds | Reimbursing depositors up to ₹5 Lakhs during bank liquidation |
| Exam Importance | Crucial for operational banking compliance | Crucial for risk management and bank closure procedures |