Page 33 - BANKING FINANCE APRIL 2024

ARTICLE

Green Banking Initiatives: (ii) Offer bundled packages with discounts for customers
(i) Introduce environmentally friendly banking initiatives who utilize multiple banking products.
that reward customers for opting for paperless Participation in Government Initiatives:
statements and transactions.
(i) Leverage government initiatives promoting digital
(ii) Promote sustainability and corporate social transactions and cashless economies.
responsibility, attracting environmentally conscious
(ii) Align the bank's services with programs like Digital India
businesses.
and promote them to customers.
Blockchain for Payments: Conclusion:
(i) Explore blockchain technology for faster and more The CASA challenge for Indian public sector banks necessitates
secure cross-border transactions, attracting businesses a proactive and multifaceted approach. By aligning their
involved in international trade. strategies with customer expectations, leveraging technology,
(ii) Implement blockchain-based solutions to reduce and fostering financial inclusion, these banks can transform the
transaction costs and enhance the efficiency of payment CASA challenge into an opportunity for sustainable growth.
processes. Embracing innovation, being agile in adapting to market
changes, and prioritizing customer satisfaction will be key in
navigating the evolving banking landscape and securing a
Cross-Selling Financial Products:
stronger CASA position for the future.
(i) Cross-sell other financial products, such as insurance,
mutual funds, and term deposits, to CASA account Source:
holders so that product per customer increases. Care Edge, ET, Business Standard

Depositors can claim unclaimed amount refund from DEA Fund

Customers or depositors can claim a refund of their unclaimed amounts from their banks. After paying the depositor
with interest, banks can lodge a claim for a refund from the Depositor Education and Awareness (DEA) Fund.
"Based on the claim request made by the customer/depositor or legal heirs (in the case of deceased depositors), the
banks shall repay the customer/depositor along with interest (applicable only in the case of interest-bearing deposit
accounts) and then lodge a claim for a refund from the DEA Fund maintained by the Reserve Bank of India (RBI) for
an equivalent amount paid to the customer/depositor," states an FAQ on the DEA Fund Scheme, 2014.
The (DEA Fund) Scheme, 2014, was formulated by the RBI. The scheme came into effect on May 24, 2014, i.e., the
date of notification of the scheme in the Official Gazette of India. According to the FAQ, the amounts credited to
the DEA Fund are the credit balances in any deposit account maintained with banks (commercial banks, co-opera-
tive banks), which have not been operated for 10 years or more by the depositor, or any amount remaining un-
claimed for 10 years or more.
Furthermore, there is no specific time limit prescribed in the scheme for claiming a refund from the DEA Fund by the
depositor. However, depositors or legal heirs are encouraged to claim such amounts as soon as they become aware
of unclaimed funds. In case the bank is under liquidation during the demand for unclaimed funds, the customer will
have to approach the liquidator for the claim, which will be settled according to the prescribed procedures.
In the case of a bank under liquidation, the depositor has to approach the liquidator of the bank for a claim, and the
liquidator would settle the claim as per the required procedure. In case of claims on deposits covered by Deposit
Insurance and Credit Guarantee Corporation (DICGC), then the liquidator can claim the equivalent amount to what
could have been claimed by DICGC i.e., up to Rs 5 lakh currently.
However, if the deposit amount is above the insurance coverage of DICGC, then the liquidator can claim the amount
only on a reimbursement basis. Whereas, in the case where the claim on deposits is not covered by DICGC at the time
of transfer to DEA Fund, the payment to the liquidator by DEA Fund shall be made only on a reimbursement basis.

30 | 2024 | APRIL | BANKING FINANCE