Centre to launch drive on unclaimed bank deposits

New Delhi: Amid the global and domestic challenges, the government on Monday underlined the need of launching a drive to help people get their unclaimed deposits in banks and other financial institutions.

Besides, it also assured that the Indian financial sector is well protected, in spite global financial situation being daunting.

The government’s move comes after a meeting held here for the first time post the Union Budget on the financial stability of economic challenges in the country.
Briefing the media, economic affairs secretary Ajay Seth said that a high-powered financial stability and development council or FSDC meeting, chaired by finance minister Nirmala Sitharaman, discussed several economical challenges in the country, including financial stability in all the financial sectors.

“The finance minister reviewed the state of the economy at the meeting and underlined the need of launching a drive to help people get their unclaimed deposits in banks and other financial institutions,” Seth said.

In the meeting, Seth also said that there is no spillover effect of the failure of American banks on the Indian financial system, which is ‘well protected’. “Besides, the need for a drive for the distribution of unclaimed deposits with financial institutions was also discussed,” he added.

The secretary further said that there was a view that the government should expedite the required legislative changes to give effect to the proposals announced in the Union Budget. “On the unclaimed deposits matter, the FSDC was of the view that a drive should be undertaken to ensure people get their unclaimed deposits lying with financial institutions,” Seth said.

Sitharaman advised that regulators should maintain a constant vigil as ensuring ‘financial sector stability is a shared responsibility’ of the regulators.

“The regulators must take appropriate and timely action to mitigate any vulnerability and strengthen financial stability,” she said.