**Banks to Receive Incentives for Returning Idle Funds to Rightful Claimants**
In a significant move aimed at promoting financial accountability and safeguarding public interest, banks will now receive incentives for returning idle funds to their rightful claimants. This initiative encourages banking institutions to take proactive steps in identifying and disbursing dormant or unclaimed funds to their legitimate owners.
Idle funds often accumulate in banks due to various reasons such as account inactivity, unclaimed deposits, or forgotten accounts. The new incentive policy motivates banks to efficiently track and resolve such cases, ensuring that funds do not remain stagnant in the banking system.
By facilitating the return of idle funds, this measure not only helps claimants reclaim their money but also strengthens trust in the banking sector. Banks stand to benefit from performance-based rewards, fostering a more customer-centric approach to managing dormant accounts.
The implementation of these incentives is expected to enhance transparency and accountability within financial institutions, ultimately contributing to a healthier economic environment.
Stay tuned for more updates on how this policy will be rolled out and the specific benefits banks will gain by participating in this initiative.
https://www.deccanchronicle.com/business/economics/rbi-to-pay-banks-for-returning-unclaimed-deposits-to-claimants-1907228