Module: General Practice
Q190: According to Section 26 of the Banking Regulation Act, 1949, a deposit account is legally classified as "Unclaimed" and the funds must be transferred to the Depositor Education and Awareness (DEA) Fund if the account has not been operated for a period of how many years?
✅ Correct Answer: D
Correct Answer: D. 10 years.
Concept: Unclaimed Deposit Definition.
The Timeline: Inoperative/Dormant: If not operated for 2 years. (Funds stay with the bank, but are segregated). Unclaimed: If not operated for 10 years. (Funds move to RBI's DEA Fund). The Action: Banks must transfer the credit balance (plus accrued interest) to the DEA Fund by the end of the month following the completion of the 10-year period.
However, the depositor retains the right to claim the money back.
Concept: Unclaimed Deposit Definition.
The Timeline: Inoperative/Dormant: If not operated for 2 years. (Funds stay with the bank, but are segregated). Unclaimed: If not operated for 10 years. (Funds move to RBI's DEA Fund). The Action: Banks must transfer the credit balance (plus accrued interest) to the DEA Fund by the end of the month following the completion of the 10-year period.
However, the depositor retains the right to claim the money back.