Thiruvananthapuram: The Kerala government has now initiated measures to identify financial assets lying in its treasury that have not been claimed for almost half-a-century. A financier judges client's borrowing capacity by assessing the latter's credit rating. The Union government decides on the quantum of credit to states based on their financial health. As high unpaid deposits in state government treasury are deemed liabilities, it is prudent to reduce them at least to improve the borrowing power.
The government pays interest on these unclaimed funds. With each passing year, the state’s interest costs on these assets keep increasing. The decision to identify the treasury money not claimed for decades is being seen as the first step towards reducing this cost.
Also, the Centre considers the amount lying in the state’s public account as government borrowings. The state fears the Centre could reduce Kerala’s borrowing limits in view of these unclaimed funds. Its decision to identify savings accounts and fixed deposits that have been dormant for long is also an attempt to preempt any such move by the Union government.
A preliminary investigation by the Treasury Department has found that there are deposits lying dormant for 40 years without any known beneficiaries. Treasury officials have written to the investors concerned several times, but they have not got any response.
The Treasury Director has now asked all Treasury offices to submit details of such accounts to ascertain the total amount lying in them.
To begin with, the treasury department will collect the details of deposits whose terms ended before March 31, 2000. The department will try to find out the nominees of the account holders based on available records and then try to contact them through registered post.
If any legal heir or nominee comes forward as beneficiary, their claims will be legally verified before releasing the amount.
The deposits that will have no claimants will go to the state government.
The Treasury Director has ordered that the details of unclaimed fixed deposits should be submitted before August 31 and of savings accounts before December 31.
Most fixed deposits are in the name of those who retired from government services. Their beneficiaries remain unaware of the despots because of the unexpected death of the account holder or due to their loss of memory.
The state government currently pays 8.5 per cent as interest on the fixed deposits in its treasury.
