Q7: When a bank transfers the amount from a 10-year unclaimed deposit to the DEA Fund, what happens to the interest accrued on that deposit?

Only the principal amount is transferred; interest is forfeited.

The interest is transferred, but the principal amount is retained by the bank.

The entire amount, including the accrued interest as on the date of transfer, is transferred.

The interest is calculated and paid to the depositor separately before the principal is transferred.

✅ Correct Answer: C

Banks are required to transfer the entire amount to the DEA Fund, which includes the accrued interest as on the date of the transfer.

Bank Promotion Exam Guide