RBI has put in place a new mechanism for grant of financial assistance to NGOs and other entities seeking to take up activities related to education and awareness of bank depositors.
Those eligible for such financial grants would include institutions, organisations and associations such as not-for-profit public charitable trusts, corporates and universities.
These entities can be already engaged in activities relating to bank depositors’ education and awareness, as also those proposing to take up depositors’ education programmes, organising seminars or research activities.
Releasing guidelines for institutions seeking financial assistance from the Depositor Education and Awareness Fund (Fund), RBI said that entities working in the area of bank depositors’ education and awareness can apply for making use of the funds.
Banks have been directed to transfer inoperative deposit accounts and balances (along with interest) that are unclaimed for 10 years or more to the fund.
As per the guidelines, a committee would administer and manage the fund.
“The activity of the institutions/organisations/ associations shall be monitored, post-registration.
“If activities of registered institutions, organisation or associations are not in conformity with activities permitted by Reserve Bank, then the Committee will deregister the institution,” RBI said.
Entities can use the fund grants for awareness among excluded sections, financial literacy, holding seminars and symposia on financial literacy and safe and secure banking.
Among others, they can also use it to fund projects and research on depositors’ education, rights awareness, production/procurement of material for distribution at exhibitions, seminars, town hall events, outreach programmes for depositors’ awareness, running media campaigns on financial literacy and customer protection.
Institutions can send their names till February 27, 2015 to apply for grant from the fund.