What are the rules for dormant accounts?
If you SB or current account hasn’t witnessed any transactions(credit/debit except interest credited the bank, deduction of service charges, for more than 1 year, the account is rendered inactive. On exceeding 2 years, the account is declared dormant/inoperative.
How do I activate dormant account RBI guidelines?
As per Reserve Bank of India (RBI) guidelines, in order to avoid an account become dormant, at least any one of the following transactions should be initiated by the customer within every 24 months: Withdrawal of cash from ATM. Withdrawal of cash from bank branch. Deposit of cash in the account.
How long can a bank account remain dormant?
Dormant vs. When an account has no transactions for 12 months, it is considered inactive. If there is no activity for 24 months, it is deemed dormant. Remember, system-generated activities like interest credits don’t count.
What happens if dormant account is not activated?
When a bank account becomes dormant, the policy says that the user will not be able to use any services associated with the account. If an account is not in use, and the customer fails to respond to the bank’s emails, calls, and letters, the bank is entitled to mark the account as inoperative.
Can I activate my dormant account online?
Internet Banking: You can log into internet banking go to the service request section and select “Activation of Inactive Account”. Customer Care: Please call Customer Care and make a request for the activation of the account.
Can I close my dormant account?
Step 1: Visit the bank branch of the bank account you want to close. Step 2: Fill the account closure form available with the bank. Step 3: Provide details of another bank account in which you want to transfer the balance funds. Step 4: Fill the de-linking account form, if required.
Can we deposit money in dormant account?
Reactivating dormant accounts Dormant bank accounts can be reactivated easily. To reactivate your account, you will need to make a transaction by any of the following methods: Transactions through a cheque. Cash or cheque deposits into your account.
Is there any charges for dormant account?
Does a bank levy a charge for reactivation of dormant accounts? No. Banks are not supposed to charge for reactivation of dormant accounts.
Can I withdraw from a dormant account?
Can a dormant bank account be reactivated? If the account has only been made inactive but not yet dormant, a simple transaction will reactivate your account. This can be done via an ATM withdrawal or through internet banking. Inactivity is usually only the case if your account hasn’t been active for a year or two.
What are the disadvantages of dormant account?
A dormant account is vulnerable to fraud, easy targets for phishing scams. Such accounts are prone to be used for illegal transactions, money-laundering, any of which could land a bonafide customer in serious trouble.
What are the restrictions of RBI on dormant or inactive accounts?
RBI hasn’t clearly defined the restrictions to be placed on dormant or inactive accounts. All it does is to advise the banks to exercise due diligence before clearing transactions in these accounts. Because of this, the restrictions will differ from bank to bank. Most banks will impose restrictions on ATM, net-baning and phone-banking transactions.
How to activate an inoperative or dormant bank account?
RBI has not prescribed any standard process for activating inoperative or dormant bank accounts. Therefore, every bank has followed its own process to activate a bank account. Following are some of the common steps which is followed by most of the banks:
What happens when a bank account is deemed dormant?
If a dormant bank account has zero balance in it, the bank has a right to close the account after some time. When an account is deemed dormant, a cheque book will not be issued to you. Further, requests for the following cannot be made:
How much does it cost to reactivate a dormant account?
Points to note 1 There are no charges for reactivating your dormant bank account as RBI has prohibited same. 2 You will be informed three months before your account is classified as dormant. 3 Banks follow standard durations and all of them will mark your account as inactive after 12 months and as dormant after 24 months.