With reference to the “Depositor Education and Awareness Fund”, consider the following statements:
1. The banks are required to transfer money sitting in inoperative accounts to this Fund
2. It is operated by a joint body of commercial banks
3. Banking Regulation Act, 1949 was amended to make provisions for its establishment
Which among the above is / are correct statements?

Answer: [C] Only 1 & 3

A new section was inserted in the Banking Regulation amendment Act 1949 to make provision for this fund. After that the Depositor Education and Awareness Fund Scheme, 2014 was notified by RBI. Under this scheme, the banks are needed to transfer money lying in accounts that have been inoperative for at least 10 years to the Fund according to specific guidelines. Banks have to list out inoperative accounts every month and transfer funds lying in these, along with interest accrued, by the end of the subsequent month. The list of inoperative accounts is given here:

http://goo.gl/3J7kXP .

This fund is managed by a committee headed by a deputy governor of the RBI and will have six members. The committee’s role will be to decide how the amount has to be utilized and the primary aim should be to undertake educational initiatives for customers.

This question is a part of GKToday's Integrated IAS General Studies Module