Thiruvananthapuram: A report by the Accountant General of Kerala on the annual review of the functioning of state treasuries for 2023-24 shows that there were 1,020 defunct Savings Bank (SB) accounts in various state treasuries with a balance of Rs 2.3 crore.
During the audit for the financial year 2023-24, an amount of Rs 2.3 crore was found in 72 treasury accounts under 1,020 SB accounts which remained unused for five years or more without any transfer to Revenue Deposit. As per relevant provisions of the Treasury Savings Bank Rules, savings bank accounts in which no transactions have taken place for five full financial years or more will cease to earn interest and the account will be treated as an unused account. The balance in such accounts should be transferred to Revenue Deposit, the report said.
At least five sub-banks held amounts exceeding Rs 10 lakh in inactive SB accounts. Kodungallur sub-bank had the highest amount: Rs 27.41 lakh. Vaikom sub-bank had Rs 17.33 lakh while Kaduthuruthy sub-bank had Rs 12.97 lakh in inactive SB accounts.
The AG has recommended that the outstanding balance of such self-service accounts, after deduction of any interest accruing after five years, be transferred to a revenue deposit.
The report also reveals that 307 fixed deposit (FD) accounts in 80 treasuries of the state were neither closed nor renewed even after expiry of the maturity period. It points out that the savings bank facility in Kerala Treasuries has been providing a channel for safe deposits to the public for the last 50 years.
Any citizen can open an account at any government treasury. Holders of fixed deposit accounts can open a TSB account to have their interest automatically credited to their TSB account. Fixed deposit accounts must either be closed or extended when they mature. However, an audit of government treasury accounts during the year under review found that the accounts were neither closed nor extended even after the maturity period, the AG’s report said.
In response to this inspection request, the revenue authorities replied to the AG that most of the unclosed/unrenewed FDs belong to contractors, which were deposited as security deposits in connection with public works undertaken by them. These can be closed only after completion of the works certified by the administrative department. The AG has noted that revenue officials regularly review all FD accounts and may take steps to close or renew the accounts. In the 2022-23 report, the AG has identified 262 such cases in 56 revenue offices.
