1,020 inoperative SB accounts with Rs 2.3 cr in Kerala treasuries, 307 FDs dormant: AG report

Thiruvananthapuram: A report by the Principal Accountant General, Kerala, on the annual review of working of treasuries in the state for 2023-24 shows that there were 1,020 inoperative savings bank (SB) accounts with Rs 2.3 crore in various treasuries.

During the inspection for the financial year 2023-24, an amount of Rs 2.3 crore was found lying in 72 treasuries under 1,020 SB accounts which were not operated for five years or more without effecting the transfer to Revenue Deposit. Under the relevant provisions of Treasury Savings Bank Rules, Savings Bank Accounts in respect of which no transactions have taken place for five complete financial years and more, cease to bear interest and the account will be treated as inoperative accounts. The balance in such accounts should be transferred to Revenue Deposit, the report cited.

At least five sub-treasuries held amounts above Rs 10 lakh in inoperative SB accounts. Sub-treasury Kodungallur had the highest amount; Rs 27.41 lakh. Sub-treasury Vaikom had Rs 17.33 lakh, while sub-treasury Kaduthuruthy had Rs 12.97 lakh in inoperative SB accounts.

The AG has recommended that the balance outstanding in such SB accounts may be transferred to Revenue Deposit after deducting the interest, if any, allowed after five years.

The report also shows that 307 fixed deposit (FD) accounts in 80 treasuries in the state were neither closed nor renewed even after the expiry of the maturity period. It notes that the Savings Bank facility in Kerala Treasuries has been providing a channel for safe deposits for the public for the last 50 years.

Any public can open an account in any of the treasuries in the state. Fixed Deposit Account holders can open a TSB Account to get their interest credited automatically into their TSB account. Fixed Deposit Accounts must be either closed or renewed on maturity. But during the inspection of Treasuries in the reporting year, it was noticed that even after the expiry of the maturity period, the accounts were neither closed nor renewed, the AG report said.

In reply to this inspection inquiry, treasury authorities replied to the AG that most of the non-closed/non-renewed FDs belong to contractors made as security deposits in connection with public works carried out by them. This can be closed only after the completion of work certified by the administrative department. The AG has remarked that treasury officers may periodically review all FD Accounts and steps may be taken to close or renew the accounts. In the 2022-23 report, AG detected 262 such cases in 56 treasuries.