How to get rich this Diwali

It’s Diwali. Raj and Sid, two fictional characters created by Firstpost, are out for shopping. Raj seems to be tight on his budget, while Sid is not. Raj is wondering if Sid got a bonus this Diwali. Sid tell’s him he simply claimed the money that belongs to him. Join the conversation between there two friends, to know how you can be richer this Diwali.

Raj: Wow, you seem to have ample to spend this Diwali. Bonus?

Sid: You kidding me, who gets bonus these days. I reclaimed the money that belongs to me.

Raj: (surprised) What?

Sid: I claimed money that has been lying in my inoperative account and dormant accounts. In short, I claimed back the unclaimed amounts.

Raj: (In a mocking tone) You must be the only one who has such accounts.

[caption id=“attachment_522714” align=“alignleft” width=“380”] Join the conversation between Sid and Raj to know how you can be richer this Diwali. AFP[/caption]

Sid: Not really. The Reserve Bank of India came out with their Statistical Tables Relating to Banks in India for 2011-12 last week. And, guess the number?

Raj: I don’t know, but being a banker that you are, I am sure you will tell.

Sid: Rs 2,481.4 crore worth unclaimed money as fixed deposits. And Rs 20.4 crore as lying as unclaimed money in savings account.

Raj: (Phew!) That’s a lot of money.

Sid: Ya, that means more than a crore people did not claim they own money for whatsoever reason.

Sid: So, you think, you have any unclaimed money?

Raj: Thinking of it. I think, I do have three-four savings accounts and I haven’t touched any of them for years now. So, there should be some money in them.

Sid: So, your accounts are inactive, dormant or have they become unclaimed deposits?

Raj: I don’t have a clue.

Sid: Any account that has not been used for more than ten years becomes unclaimed account. Typically, when you don’t transact (debit or credit) for more than a year, banks call it an inactive or inoperative account. Typically, if it’s more than two years it becomes dormant account.

Raj: I guess, I do have some dormant accounts for sure.

Sid: Remember, that a transaction that the bank makes from their side, like earned interest, transaction will not be taken into account.

Raj: Well, if my dormant account keeps earning money, what’s the harm in keeping such an account untouched?

Sid: First, it’s an expensive matter, second it exposes your account to risk and lastly it’s a very inconvenient matter.

Raj: How is it expensive?

Sid: Dude, look at the opportunity cost you are paying. This money earns only 4% interest, even if you park the same in PPF you will earn 8.6%.

Raj: What if I don’t have a substantial amount? That would hardly matter.

Sid: Well, it will. If you account has a minimum balance clause, and the funds are lesser than that, you will be slapped with a fee.

Raj: If they slap a fee, there is a good possibility that my account actually runs into a negative balance and I, in return, owe the bank as fees.

Sid: Possible. But, a few banks may not charge dormant accounts fees. So, it will vary from bank to bank.

Raj: What about risk of frauds?

Sid: Inoperative or dormant accounts can easily be targets for potential frauds, like embezzlement. Also, such accounts can be used for money laundering, funding terrorism and illegal transitions. Also, if you’ve changed location and your dormant account statements continue to send correspondence to the old address and they fall in wrong hands, who knows what can happen.

Raj: How do I claim money for such accounts.

Sid: Well it’s simple. All you have to do is make one transaction from your ATM card. If your ATM card too isn’t working, you will have to visit the bank and fill the claim form available online. Ensure that you carry the valid identity proof documents.

Raj: Is it that simple?

Sid: Yes, it is simple. It will take a few working days to reactivate the account. You can then go ahead and withdraw the amount or even choose to close the account completely.

Raj: Anything else I should know about?

Sid: The RBI has asked banks to mention the names of those consumers who have unclaimed accounts on their websites. So, you may want to check that as well.

Raj: My dad passed away a few years back. I guess he should have some accounts as unclaimed deposits, which we didn’t know about. My be I could check his name too.

Sid: Sure, banks’ websites will give you that detail. As well as as to how a legal hire can claim such deposits. So, I suggest do visit the bank website before going to the bank. So how many dormant accounts you think you have?

Raj: Thinking of it now, I change so many jobs in the last 20 years of my career and with every new job, I got a new account. After a while I forgot about the older accounts, am sure there is some money in each of those accounts.

Sid: True, you won’t believe I had six accounts and in four accounts (which I totally forgot about) had as much as Rs2.7 lakh in total.

Raj: Wow! That’s a big amount. No wondering your Diwali seems so bright.

Sid: Well, this Diwali, you let go of lethargy and reclaim what belongs to you. Happy Diwali.