An annual review of the functioning of treasuries in Kerala has revealed that ₹2.33 crore remained in 1,020 savings bank (SB) accounts that have remained inoperative for more than five years.
A report of the Accountant General (Accounts and Entitlements), Kerala, for the 2023-24 financial year noted the anomaly in 72 treasuries.
As per Rule 28 and 40 of the Treasury Savings Bank Rule, SB accounts where no transactions have taken place for five complete financial years and more, cease to bear interest and they will be treated as inoperative accounts, the report noted.
Four sub-treasuries on the list had amounts in excess of ₹10 lakh in inoperative SB accounts. The report recommended that the balance outstanding in the above accounts be transferred to Revenue Deposit after deducting the interest, if any, allowed after five years.
Fixed deposits
The annual review also found 307 cases in 80 treasuries where fixed deposits were neither closed nor renewed on maturity. The Treasury Savings Bank offers facilities for savings bank (SB) operations and fixed deposits. Fixed Deposit accounts should either be closed or renewed on maturity, the report noted.
The report carries an explanation by treasury authorities that most of the FDs in question belong to contractors, and were created as security deposits for public works carried out by them. They can be closed only after the work is completed.
The report, nonetheless, recommended that treasury officers periodically review all fixed deposit accounts and take steps to close or renew them on time.
