Old-timers had a tradition to deposit their money in post-offices keeping their children unaware about such deposits. Rather such old persons may reveal to post-office employees that their sons/daughters etc. were unaware of their deposits.
Some postal-employees may also play fraud by withdrawing such amounts after the death of depositors/account-holders, about whom they could easily come to know especially in rural areas. Postal department should also take steps for transferring deposits lying unclaimed, including funds lying in inoperative accounts, after the expiry of three years to government-accounts for avoiding possibility of any such frauds.
Such frauds have been highlighted in case of banks by media through TV-serials of consumer-awareness. Reserve Bank of India (RBI) has recently formulated a system whereby such unclaimed amounts for last ten years would be transferred to a special account.
But this ten-year period is extra large and must be reduced to three years. It is unfair that banking sector dominated by private sector may be allowed to mint money out of depositors’ unclaimed money parked with them.