Has your bank account gone dormant? Here are 4 ways to reactivate it
unclaimed deposits to the Reserve Bank of India's Depositor Education and Awareness Fund. To claim the funds from this fund, you will need to establish contact with the RBI. Several public sector banks in India now require both savings and current accounts to be classified as inoperative if there have been no transactions in the account for a period exceeding two years, aligning with the directives set forth by the RBI.
An inoperative account is defined as an account that has not experienced any customer-initiated transactions (whether debit or credit) for a continuous two-year period, with transactions like interest credited by the bank or service charges imposed by the bank being excluded from this criterion. When an account is categorized as inoperative, the bank will issue a notice to the account holder, apprising them of the account's status. The account holder will have the opportunity to reactivate the account by conducting a transaction within a specified timeframe, usually around 90 days.
If the account holder does not revive the account within this stipulated period, the bank reserves the right to impose additional fees or potentially even close the account. Below are several factors that lead banks to designate accounts as inoperative: Numerous banks are urging customers to activate their accounts and update their KYC details if their accounts have remained inactive for over 24 months. This precautionary step is taken to minimize the risk of fraud and other financial crimes.
Furthermore, banks must adhere to the Know Your Customer (KYC) directives established by the RBI. These guidelines necessitate that banks verify their customers' identities and maintain up-to-date customer records. Bank customers can
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