BRPD Circular No. 10: Policy on Unclaimed Deposits and Valuables

BRPD Circular No. 10: Policy on Unclaimed Deposits & Valuables

Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. 12 September, 2018

BRPD Circular No.-10 Date: ------------------------ 28 Bhadra, 1425

Managing Director/Chief Executive All Scheduled Banks operating in Bangladesh.

Dear Sir,

Regarding the policy on unclaimed deposits and valuables.

Under Section 35 of the Bank Companies Act, 1991 (amended up to 2013), instructions have been issued to deposit unclaimed deposits and valuables of banks into the government sector at the Bangladesh Bank. According to the said Act, if no transaction or communication has been made for 10 (ten) years regarding any payable amount (excluding Government, minors, or court authorities) in any branch of a bank company in Bangladesh, provision has been made to send a 3 (three) months' notice to the payee of such amount, cheque, draft, or exchange document, or to any person on behalf of the payee, and to the depositor of valuables. If no receipt of delivery or any reply is received after the expiry of 3 (three) months from the sending of the aforementioned notice, instructions are given to deposit the unclaimed deposits and valuables into the Bangladesh Bank for deposit into the government sector in accordance with the rules. To ensure proper implementation of the said Act, the following policy shall be followed:

1. Calculation and Notice: (a) Any payable amount (fixed term and any other deposit, dividend payable on any deposit, bonus, profit, or any other payable amount), payable cheques, drafts, or exchange documents, and valuables kept in the custody of the bank shall be considered as unclaimed amounts and valuables if no transaction or communication has been made by the customer for 10 (ten) years in accordance with the calculation under sub-section (1) of Section 35 of the Bank Companies Act, 1991, excluding Government, minors, or court authorities.

(b) A written notice of 3 (three) months shall be sent by registered post to the payee of the calculated amounts and cheques, drafts, or exchange documents, or to any person on their behalf, and to the depositor of valuables, along with the bank company's receipt, at their last known address sent or delivered. If the address of the payee of the draft or exchange document is not available, a similar notice shall be provided to the address of the applicant. In the matter of sending the notice, the instructions specified in sub-section (3) of Section 35 of the said Act shall be followed.

2. Submission of Details: In accordance with sub-section (1) of Section 35 of the Bank Companies Act, 1991, after the expiry of 10 (ten) years of the calculated period, if any unclaimed amounts and valuables remain unpaid or, in some cases, in a returnable state with the bank, a list of such amounts or items shall be sent by the bank to the Banking Regulation and Policy Department, Bangladesh Bank, Head Office, Dhaka, within thirty days after the end of each calendar year in the prescribed form (Appendix-K).

3. Deposit of Unclaimed Deposits and Valuables at Bangladesh Bank: If no receipt of delivery or any reply is received after the expiry of 3 (three) months from the sending of the notice in accordance with sub-section (1) of Section 35 of the Bank Companies Act, 1991, then in accordance with sub-section (2) of the said Act, unclaimed deposits and valuables shall be deposited at the Bangladesh Bank in April of each calendar year. In this regard, the following procedure shall be followed:

(a) Unclaimed Deposits: (i) Unclaimed deposits shall be identified and the amount with interest shall be deposited at the Bangladesh Bank by cheque/pay order. In this regard, both domestic currency and foreign currency unclaimed deposits and valuables are kept with the bank companies. Due to fluctuations in foreign exchange rates at different times, difficulties arise in the acceptance of unclaimed foreign currency deposits and valuables by the Bangladesh Bank, settlement of claims raised within a specified period after acceptance, and submission of unclaimed deposits and valuables to the government. Therefore, the amounts of domestic currency deposits and foreign currency deposits shall be calculated separately and deposited at the Bangladesh Bank.

(ii) The amount of unclaimed domestic currency (Taka) deposits with interest shall be deposited at the Bangladesh Bank, Motijheel Office, by cheque/pay order denominated in Taka.

(iii) The amount of unclaimed foreign currency deposits with interest shall be deposited at the Foreign Reserve and Treasury Management Department, Bangladesh Bank, Head Office, Dhaka, by cheque/pay order denominated in 6 (six) approved foreign currencies of the Bangladesh Bank, namely: US Dollar ($), Pound Sterling (£), Euro (€), Canadian Dollar (C$), Australian Dollar (A$), and Japanese Yen (¥). For currencies of other countries apart from the aforementioned six foreign currencies, a cheque/pay order denominated in the equivalent amount of US Dollar ($) at the prevailing exchange rate on the date of deposit shall be provided.

(iv) The prescribed table (Appendix-K) details shall be attached with the letter of remittance (Covering Letter). A copy of the letter shall be sent to the Banking Regulation and Policy Department, Bangladesh Bank, Head Office, Dhaka.

(b) Unclaimed Cheques, Drafts, or Exchange Documents: (i) In the case of cheques, drafts, or exchange documents, the amount of money, with interest if any, that would have been paid by the said bank if presented, shall be deposited at the Bangladesh Bank.

(ii) In the case of cheques, drafts, or exchange documents denominated in domestic currency, they shall be deposited at the Bangladesh Bank, Motijheel Office, by cheque/pay order denominated in Taka.

(iii) In the case of cheques, drafts, or exchange documents denominated in foreign currency, they shall be deposited at the Foreign Reserve and Treasury Management Department, Bangladesh Bank, Head Office, Dhaka, by cheque/pay order denominated in 6 (six) approved foreign currencies of the Bangladesh Bank. For currencies of other countries apart from the aforementioned six foreign currencies, a cheque/pay order denominated in the equivalent amount of US Dollar ($) at the prevailing exchange rate on the date of deposit shall be provided.

(iv) The prescribed table (Appendix-G) details shall be attached with the letter of remittance (Covering Letter). A copy of the letter shall be sent to the Banking Regulation and Policy Department, Bangladesh Bank, Head Office, Dhaka.

(c) Unclaimed Valuables: (i) In the case of valuables, the debts, documents, or arrangements kept in the custody of the bank shall be deposited at the Bangladesh Bank, Motijheel Office, according to the percentage of the said debts, documents, or arrangements.

(ii) The prescribed table (Appendix-H) details shall be attached with the letter of remittance (Covering Letter). A copy of the letter shall be sent to the Banking Regulation and Policy Department, Bangladesh Bank, Head Office, Dhaka.

4. Publication of List and Preservation of Documents: (a) After the deposit of unclaimed deposits and valuables at the Bangladesh Bank, the list of unclaimed deposits and valuables transferred to the Bangladesh Bank shall be published by the concerned bank on their website and in the Government Gazette and at least 2 (two) newspapers once every three months for 1 (one) year.

(b) In accordance with Section 35(9) of the Bank Companies Act, 1991, banks shall regularly supply the soft copy of the said details to the Bangladesh Bank for display on the Bangladesh Bank's website for one year.

(c) After the transfer of unclaimed deposits and valuables to the Bangladesh Bank, the concerned bank shall identify the matter of such transfer in the application form for opening such accounts and record the relevant details. They shall preserve the signature card, documents related to the authority of signature, and other documents. The Bangladesh Bank does not need to preserve such documents unless informed otherwise. The said documents shall be preserved until such time.

5. Claim Submission to Bangladesh Bank: (a) If any claim is raised within 2 (two) years from the date of acceptance of the amount of unclaimed deposits and valuables by the Bangladesh Bank, the concerned bank shall apply to the Banking Regulation and Policy Department, Bangladesh Bank, Head Office, Dhaka, for return of the same along with the necessary documents (Appendix-E) upon the customer's application.

(b) In the case of domestic currency deposits and valuables, a copy of the application letter shall be sent to the Bangladesh Bank, Motijheel Office, and in the case of foreign currency deposits and valuables, a copy of the application letter shall be sent to the Foreign Reserve and Treasury Management Department, Bangladesh Bank, Head Office, Dhaka.

(c) In the case of deceased customers, their death certificate shall be submitted, and in that case, the nominee(s) or, if no nominee is appointed, the appropriate heir(s) according to the succession certificate shall apply to the concerned bank for the return of unclaimed deposits or valuables.

6. Transfer of Unclaimed Deposits and Valuables to the Government: After the acceptance of the amount of unclaimed deposits and valuables by the Bangladesh Bank, if no further claim is raised by the customer or informed to the Bangladesh Bank by any party after meeting the claims raised by the customer within 2 (two) years, then after the expiry of the said 2 (two) years period, no one shall have any claim on such amount or valuables, and it shall be considered as government property and shall be submitted to the government.

7. Amendment and Modification: To maintain consistency with the Bank Companies Act, the Bangladesh Bank may issue new instructions/advisories from time to time as necessary and may amend and modify the specified policy.

These instructions shall come into force immediately.

Yours faithfully,

(Abu Farah Md. Naser) General Manager Phone: 9530252

Appendix-K ----------- [Bank Name] Limited Details of Unclaimed or Inactive Deposits and Valuables for 10 Years or More As on 31 December, ------

1. Unclaimed or Inactive Taka Deposits: S.No | Branch Name | Account Holder Name | Father/Husband Name | Current Address | Permanent Address | Type of Account | Account Number | Amount in Taka | Date of Last Transaction/Maturity Date | Remarks (if any)

2. Unclaimed or Inactive Foreign Currency Deposits: S.No | Branch Name | Account Holder Name | Father/Husband Name | Current Address | Permanent Address | Type of Account | Account Number | Amount in Foreign Currency | Date of Last Transaction/Issue Date | Remarks (if any)

3. Unclaimed Cheques, Drafts, or Exchange Documents: S.No | Branch Name | Payee Name | Type of Document/Instrument | Instrument/Document Number | Issue Date | Amount in Taka/Foreign Currency | Remarks (if any)

4. Unclaimed Valuables: S.No | Branch Name | Locker Holder Name | Date of Locker Receipt | Date of Last Communication/Rent Payment | Remarks (if any)

Appendix-K ----------- [Bank Name] Limited Unclaimed or Inactive Taka Deposits for 10 Years or More As on 31 March, ------

S.No | Branch Name | Account Holder Name | Father/Husband Name | Current Address | Permanent Address | Type of Account | Account Number | Amount in Taka/Foreign Currency | Date of Last Transaction/Maturity Date | Date of Notice Sent | Remarks (if any)

Appendix-G ----------- [Bank Name] Limited Unclaimed or Inactive Unclaimed Cheques, Drafts, or Exchange Documents for 10 Years or More As on 31 March, ------

S.No | Branch Name | Payee Name | Type of Document/Instrument | Instrument/Document Number | Issue Date | Amount in Taka/Foreign Currency | Date of Notice Sent | Remarks (if any)

Appendix-H ----------- [Bank Name] Limited Unclaimed or Inactive Unclaimed Valuables for 10 Years or More As on 31 March, ------

S.No | Branch Name | Locker Holder Name | Date of Locker Receipt | Date of Last Communication/Rent Payment | Date of Notice Sent | Remarks (if any)

Appendix-E ---------- [Bank Name] Limited Necessary Documents for Return of Unclaimed Deposits or Valuables:

a) Customer's application letter (including customer's address and contact number) to be verified by the officials of the concerned bank branch; b) Customer's National ID to be verified by the officials of the concerned bank branch; c) Copy of the application letter sent by the bank to the Bangladesh Bank, Motijheel Office (for domestic currency deposits and valuables) and Foreign Reserve and Treasury Management Department (for foreign currency deposits and valuables) at the time of deposit; d) Copy of the page containing the relevant customer's details from the details sent by the bank to the Bangladesh Bank, Motijheel Office (for domestic currency deposits and valuables) and Foreign Reserve and Treasury Management Department (for foreign currency deposits and valuables) at the time of deposit, in accordance with Appendix-K, Appendix-K, and Appendix-G; e) Photocopy of the cheque/pay order sent by the bank to the Bangladesh Bank, Motijheel Office (for domestic currency deposits and valuables) and Foreign Reserve and Treasury Management Department (for foreign currency deposits and valuables) for deposit, or receipt of valuables deposit; f) In the case of deceased customers, their death certificate shall be submitted, and in that case, a copy of the application submitted by the nominee(s) or, if no nominee is appointed, the appropriate heir(s) according to the succession certificate to the bank for the return of unclaimed deposits or valuables. In this regard, the National ID of the nominee(s)/heir(s) and relevant documents (to be verified by the officials of the concerned bank branch) shall be submitted.