The finance ministry on Wednesday set up a committee led by RBI deputy governor HR Khan to assess the amount of unclaimed deposits in small savings scheme and recommend how it can be used to benefit senior citizens.
“Procedure for bringing such unclaimed deposits to a common pool to be suggested by the committee,” said a finance ministry release, outlining the terms of reference of the panel, adding that it would submit its report by December 31, 2014.
The panel, which has been set up following a Budget announcement by finance minister Arun Jaitley, would also suggest whether the unclaimed deposit should come to the government or be kept in a separate account.
At present, there is no official estimate of such unclaimed deposits. Laws governing each of these schemes also bar anyone but the member or the nominee from claiming the funds.
Accordingly, the finance ministry has also asked the panel to suggest any changes required in the legal framework to recover these funds.
The members of the Committee would include secretary, department of posts, joint secretaries in the ministry of law and budget division of the finance ministry, deputy managing director of State Bank of India and executive director, Punjab National Bank.