What is the full form of DEAF

DDT: DichloroDiphenylTrichloroethane

DEAF stands for Depositor Education and Awareness Fund. It is a scheme or fund introduced by RBI in 2014. It is introduced for the unclaimed funds of depositors. According to this scheme, the banks are required to transfer money from the accounts which have been inoperative for at least ten or more years to the DEAF within a period of three months after the expiry of the specified period of ten years. In other words, any amount lying with the bank unclaimed for ten or more years is required to be credited to Depositor Education and Awareness Fund Scheme, 2014.

The depositor can claim his or her deposit even after it is transferred to DEAF. He or she also gets interest for the deposit if applicable. The rate of interest on such deposits is decided by the RBI. RBI has a committee to manage this fund in accordance with the guidelines of this scheme. This committee comprises an ex-officio Chairperson and a maximum of six members as decided by the RBI.

There are a number of accounts that come under this scheme, some of which are as follows:

• Savings bank deposit accounts
• Current deposit accounts
• Fixed or term deposit accounts
• Cash credit account
• Cumulative or recurring deposit accounts
• Outstanding telegraphic transfer
• DDs, banker's cheques, pay orders, sundry deposit accounts, etc.

According to RBI, this fund would be utilized for the promotion of the depositor's interest and similar purposes related to the promotion of the depositor's interest as specified by the RBI from time to time. DEAF is defined under Section 26A of the Banking Regulation Act 1949.

Amount to be sent to the Fund from non-operative accounts

The Reserve Bank of India has a particular account for the Depositor Education and Awareness Fund (DEAF). The transfer of the following categories of funds has been authorised by RBI.

• The credit balance of any bank-maintained deposit account that has been inactive for 10 years or longer.
• In addition to the accounts mentioned above, RBI may occasionally designate other accounts. The accumulated interest that the bank would have given the client is also included in the amount to be transferred.
• According to an RBI circular dated 02 February 2015, banks are required to provide a list of unclaimed deposits and dormant accounts that have been inactive or inoperative for more than 10 years on their websites. The banks must perform this task each month, and at the end of each month, the unclaimed funds must be remitted to RBI.
• These unclaimed funds that are put in the DEAF account must be reported by the respective institutions. The banks utilise Forms I and II to submit these returns.

Provision for a refund of the amount, if claimed by the depositor

Even after the deposit has been forwarded to the DEAF, depositors have the chance to retrieve the money under the DEAF plan.

• On the websites of the different banks, depositors can review the specifics of the inactive accounts and unclaimed funds sent to DEAF.
• The claimant must visit a bank branch and submit the appropriate bank's Unclaimed Deposits Claim Form.
• The necessary KYC information must be provided, serving as evidence of the account and the amount being claimed.
• After the claims have been verified, banks may transfer the claim to the clients and then request a reimbursement from the RBI up to the amount that the customers have actually claimed.
• Any interest due from the fund on a claim will only apply to those accounts for which the bank was responsible for the interest accruing between the date the money was transferred to the fund and the date it was paid to the customer. RBI chooses the appropriate interest rate.
• If only a portion of the claimed sum is paid, the account is resurrected and made operational. The whole sum is returned to the account that is currently active, including any applicable interest. The bank has the right to request a return of the entire amount plus interest.
• The depositor may present their claim to the liquidator in the event that a bank is in liquidation. If DICGC Insurance covers the deposits, DEAF will reimburse the liquidator for any money that may have been recovered from DICGC. The fund reimburses the liquidator for any payments given to the depositor, including for those sums that are not protected by the DICGC.
• The refund request must be submitted by the final day of the next month for any claims that the banks resolve within a month.