DEAF Full Form | Full Form of DEAF




DEAF Full Form - Depositor Education and Awareness Fund

 Depositor Education and Awareness Fund

Depositor Education and Awareness Fund

  • DEAF stands for Depositor Education and Awareness Fund.
  • It's a scheme or fund introduced by RBI in 2014. It's introduced for the unclaimed funds of depositors. According to this scheme, the banks are required to transfer money of the accounts, which are inoperative for a minimum of ten or more years, to the DEAF within a period of three months after the expiry of specified period of ten years.
  • In other words, any amount lying with bank unclaimed for ten or more years is required to be credited to Depositor Education and Awareness Fund Scheme, 2014.
  • The depositor can claim for his or her deposit even after it's transferred to DEAF. He or she also gets interest for the deposit if applicable.
  • The speed of interest on such deposits is set by the RBI. RBI has a committee to manage this fund in accordance with the rules of this scheme.
  • This committee comprises an ex-officio Chairperson and a maximum of six members as decided by the RBI.
  • There are varieties of accounts which come under this scheme, a number of which are as follows:
    • Savings 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 time deposit account etc.
  • According to RBI, this fund would be utilized for the promotion of depositor's interest and similar purposes associated with the promotion of depositor's interest as specified by the RBI from time to time. DEAF is defined under Section 26A of Banking Regulation Act, 1949.

Refund of DEAF

  • RBI will involve all information that are required which is said to an account or deposit or transaction that a claim for refund has been submitted by a bank. Any amount payable in foreign currency under an instrument at the time of transfer to the DEAF be converted into Indian Rupees at the rate of exchange prevailing on that date and within the event of a claim, the DEAF shall be liable to refund only the Indian Rupees received with reference to instructions.
  • If any amount that are credited permanently and for those amount where refund has been claimed from the DEAF, banks shall preserve records/documents in respect of such accounts and transactions, for a period of a minimum of five years from the date of refund.
  • The Fund shall be utilized for promotion of depositor’s interest and for other purposes are specified from time to time by RBI.
  • The depositor would, however, be entitled to say from the bank his deposit or operate his account after the expiry of ten years, even after the unclaimed deposit funds are transferred to DEAF.

Committee and its functions

  • The DEAF are going to be managed by a committee headed by a deputy governor of the RBI and can have six members. The committee’s role is to make a decision how the quantity has got to be utilized and therefore the primary aim to undertake educational initiatives for customers.
  • The initiatives include information-sharing seminars or research projects associated with banking. The committee also will advise the RBI on the speed of interest that should be paid to depositing banks for the funds got from the banks. The speed of interest paid changes from time to time for the banks and their depositors
  • The Committee shall meet when necessary, but a minimum of once during a quarter time period the committee should have met for the discussion. The quorum for every meeting shall be a minimum of the Chairman and one-third of its total members.
  • The Committee can form its own rules for business. The Fund shall be utilized for promotion of depositor’s interests specified by the reserve bank.
  • The Committee function for the needs which will be specified by reserve bank in this regard from time to time.
  • The Committee must form list of activities, the standards and procedure, etc. For incurring expenditure and achieving the objectives of the DEAF in several interval of time.


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