Unclaimed deposits of Rs 48,461 crore transferred to Depositor Education & Awareness Fund

New Delhi, Unclaimed deposits worth Rs 48,461.44 crore pertaining to 16,79,32,112 accounts have been transferred by the banks to Depositor Education & Awareness Fund as on March 31, 2023, Parliament was informed on Tuesday. Ministry of Corporate Affairs has informed that the amount lying with Investor Education and Protection Fund, as on March 31, 2023, is Rs 5,714.51 crore, Minister of State for Finance Bhagwat Karad said in a written reply in Rajya Sabha.

"Fugitive Economic Offender Act was enacted in 2018. The Directorate of Enforcement (ED) has informed that as on August 2, 2023, there are eight fugitive economic offenders who are wilful defaulters," he said.

ED has further informed that as on August 2, 2023, proceeds of crime of fugitive economic offenders, amounting to Rs 34,118.53 crore have been attached, out of which assets amounting to Rs 15,838.91 crore have been confiscated and assets amounting to Rs 15,113.02 crore have been restituted to the public sector banks, he said.

Replying to another question, Karad said, wilful defaulters cannot get a fresh loan for 12 months after executing a compromise settlement.

The cooling period of 12 months has been introduced as a general prescription for normal cases of compromise settlements, without prejudice to the penal measures applicable in respect of borrowers classified as wilful defaulter or fraud, as per the RBI's Master Circular on Wilful Defaulters dated July 1, 2015, and the Master Directions on Fraud dated July 1, 2016, he said.

Scheduled Commercial Banks (SCBs) and Urban Cooperative Banks (UCBs), having asset size of Rs 500 crore or above, report certain credit information of all borrowers having aggregate exposure of Rs 5 crore and above to the Central Repository of Information on Large Credits (CRILC), he said.