Committee set up to recommend ways of using of unclaimed savings

Finance minister Arun Jaitley today approved the setting up of a committee to examine unclaimed amounts remaining with PPF, post office and other savings schemes and recommend how this amount can be used to protect and further the financial interest of senior citizens.

The committee headed by deputy governor of the Reserve Bank of India (RBI) will have secretary in the department of posts, joint secretary in the ministry of law and justice, deputy managing director of SBI, executive director of Punjab National Bank, joint secretary (budget) in the department of economic affairs as members while joint director of the National Savings Institute will be its member secretary.

The finance minister, in his budget speech, had announced "a large amount of money is estimated to be lying as unclaimed amounts with PPF, post office, savings schemes etc, which are mostly out of investments belonging to the senior citizens and on their demise that remain unclaimed for want of relevant payment instructions" and has proposed to set-up a committee to examine and recommend how this amount can be used to protect and further financial interest of the senior citizens.

The committee has been asked to estimate the amount lying unclaimed under various schemes (Small Savings and other Savings Schemes of banks) with post offices/ public sector banks, based on defined scope by Reserve Bank of India.

The committee has been asked to suggest the procedure for bringing such unclaimed deposits to a common pool. Changes, if any, required to be made in the legal framework may be suggested. It would also suggest if such a pool should be placed within government account or outside it.

The committee will also recommend how this unclaimed amount can be used to protect and further financial interests of the senior citizens.

The committee has been asked to submit its report by 31 December 2014.