Module: General Practice
Q193: Which of the following statements regarding the interest payable on Unclaimed Deposits transferred to the DEA Fund is INCORRECT?
✅ Correct Answer: B
Correct Answer: B. The interest rate is fixed permanently at 4 percent per annum.
Concept: DEA Fund Interest Rates.
Correction: The interest rate is NOT fixed.
It is determined by the RBI from time to time via notification.
Current Rate: The rate has been reduced to 3 percent per annum (Simple Interest) for current claims.
Mechanism: When you claim the money in 2026, you get the Principal + Interest.
The interest is calculated at the rates applicable during those specific years (e.g., 4% for older years, 3% for recent years). It is not compound interest.
Concept: DEA Fund Interest Rates.
Correction: The interest rate is NOT fixed.
It is determined by the RBI from time to time via notification.
Current Rate: The rate has been reduced to 3 percent per annum (Simple Interest) for current claims.
Mechanism: When you claim the money in 2026, you get the Principal + Interest.
The interest is calculated at the rates applicable during those specific years (e.g., 4% for older years, 3% for recent years). It is not compound interest.