RBI Tells Banks Exercise Caution On Inoperative Account Payments

The Reserve Bank of India (RBI) has asked banks to remain vigilant while making payments on inoperative accounts. "Banks are advised to invariably verify the genuineness of the transactions and ensure that the amounts paid to the customers are properly audited by the internal auditors/statutory auditors," the RBI said in a circular to banks.

It also asked banks to carry out proper verification before making any such payment. "Banks should follow all instructions meticulously in respect of inoperative accounts," the RBI said.

The RBI had advised banks to put in extra effort to trace the customers as far as inoperative accounts were concerned.