Bank account becomes dormant if not used for two years. When an account becomes dormant, you will not be able to transact from the account.
Now-a-days, people have more than one bank account due to changing jobs repeatedly or shifting from one city to another. In spite of having more bank accounts, we do transactions with the same account. Whereas the second account remains unused. The benefit of having more than one account is more harm than that. Bank account becomes dormant if not used for two years. When an account becomes dormant, you will not be able to transact from the account.
If a customer does not respond to the bank’s emails, calls and letters, then the bank dormant the account after one year. The policy ensures that the money lying in the bank account is not misused. Therefore, the regulator has asked banks to make more efforts to find out the account holders whose accounts have become dormant.
According to the RBI circular, if the customer has changed the bank account due to shifting his house, then banks should take the details of the new account, where the money can be made from the inoperative bank account.
Bank Contact Customers
The Reserve Bank of India (RBI) has directed banks to conduct an annual review of accounts in which there has been no operation, no credit or debit transactions other than depositing interest or debiting service charge.
If there is no transaction in an account for more than one year, the banks will have to inform the customers in writing and try to find out the reason for this.
Find a new bank account
If the customer replies to the bank, then he should consider the account as operative account and the customer should give one year time to operate it.
However, if the account holders still do not operate the account during the extended period, the banks will be treated as a dormant account after the deadline expires.
Turn on the dormant account
If your account is dormant, you can activate it again. For this, the customer will have to go to the bank branch and submit an application to activate the dormant account. After receiving the application, the bank can activate the dormant account the next day or it may take longer due to internal processing and risk category of the depositor.
Get KYC Deposit
RBI has allowed banks to activate the bank account of customers based on the risk category of the account holder. Therefore, to activate the account, submit a new KYC document to the bank branch.
There will be no charge for activating the account
RBI has asked banks not to levy any charge on activating dormant accounts. Interest on savings bank accounts should be credited regularly whether the account is current or not.
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