Inactive deposit accounts, a rejoinder

Sri Lanka Banks' Association (Guarantee) Ltd, Secretary General Upali de Silva has sent us the following clarification on inactive deposit accounts in banks and connected issues: The Sri Lanka Banks' Association (Guarantee) Limited has brought to the notice of Customers of Banks, provisions in the Banking Act to consider certain articles as Abandoned Property if there has been no activity for a period of 10 years.

In the case of safe custody lockers such period is three years from the date the rental period expires and where the locker holder has not responded to any notices sent by the Bank. These funds or articles will be transferred to the Central Bank when so directed. However, some steps customers who have not operated their accounts for a length of time could take to activate their accounts to indicate they do not intend their property to be considered as abandoned are,

* A deposit or a withdrawal in the case of a customer account.

* Notification of a change of address or any other written communication.

* Present a passbook for updating.

* Payment of overdue safe custody locker fees.

* Any other written correspondence such as checking of the balances, etc.

Fixed deposit account holders, whether in rupees or in foreign currency, who have given automatic renewal instructions to banks need not take any steps to reactivate their accounts since automatic renewal will constitute an activity.

The Central Bank of Sri Lanka may also consider an account where regular statements, which do not require a response are despatched and where such statements are not returned undelivered as being active accounts.

Even after an account is reported, a customer requiring to reactivate an account or withdraw funds could do so after properly identifying himself/herself.