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Friday 10 July 2020

Figuring out how unclaimed PPF can help senior citizens

Union Finance Minister Arun Jaitley has approved the setting up of a committee under the chairmanship of deputy governor, Reserve Bank of India (RBI), to examine unclaimed amounts that have remained in PPF, post office, saving schemes etc and recommend how this amount can be used to protect and further the financial interest of the senior citizens.

The finance minister, vide para 39 of his Budget speech 2014-15, had announced that “a large amount of money is estimated to be lying as unclaimed amounts with PPF, post office, saving schemes etc. These are mostly out of  investments belonging to the senior citizens and on their demise, remain unclaimed for want of relevant payment instructions”.

Jaitley 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.

Accordingly, with the approval of the finance minister, a committee has been set-up with the following composition:

  1. Deputy Governor, RBI — chairman;
  2. Secretary, Department of Posts — member;
  3. Joint Secretary (Law), M/o Law and Justice — member;
  4. Deputy Managing Director of SBI — member;
  5. Executive Director, Punjab National Bank — member;
  6. Joint Secretary (Budget), DEA — member,
  7. Joint Director, National Savings Institute — member secretary.

The terms of reference of the committee will be:

  • Based on the scope defined by the Reserve Bank of India, estimation of amount lying unclaimed under various schemes (small savings and other savings schemes of banks) with post offices/public sector banks;
  • Procedure for bringing such unclaimed deposits to a common pool to be suggested by the committee. Changes, if any, required to be made in the legal framework may be suggested. The committee to also suggest if such a pool should be placed within government account or outside it.
  • Committee to recommend how this unclaimed amount can be used to protect and further financial interests of the senior citizens.

The committee will submit its report by 31 December.

PIB

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