Logo of the RBI in front of its museum in Kolkata.

(Photo source: Shubhayan Bhattacharya/ NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The Reserve Bank of India (RBI) on Tuesday unveiled a year-long incentive scheme to encourage banks to reduce the volume of unclaimed deposits. Titled the 'Scheme for Facilitating Accelerated Payout of Inoperative Accounts and Unclaimed Deposits,' the programme will reward banks with differential payouts based on how long an account has remained inoperative and the size of deposits in it.

According to the RBI, the scheme is designed to cut down both the stock of existing unclaimed deposits and the inflow of fresh amounts into the Depositors' Education and Awareness Fund. The central bank said the initiative seeks to encoura

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