What is The Full Form of DEAF in Banking
The DEAF full form in Banking is Depositor Education and Awareness Fund. It is a scheme or fund launched by the RBI in 2014. It was created to address depositors’ unclaimed monies. According to this system, banks must transfer funds from inactive accounts for at least ten years to the DEAF within three months of the ten-year term expiring. In other words, any amount left with the bank unclaimed for 10 or more years must be credited to the Depositor Education and Awareness Fund Scheme, 2014.
Purpose of DEAF
The main purpose of DEAF is to educate the depositors about their rights and responsibilities and to help them learn more about the banking system. It also helps to enhance the finanial literacy and awareness about the common people, with respect to the various banking services and products. The funds that are collected will be used for workshops, awareness campaigns and training programs for the depositors.
Importance of DEAF:
DEAF increases trust and confidence in the banking sector by educating the general public. It Increases understanding of banking procedures and consumer rights, which helps to defend depositors’ interests. It also improves depositors’ comprehension of banking products, allowing them to make more educated decisions.
