How to activate inoperative bank accounts in SBI, HDFC Bank, and PNB as RBI asks banks to reduce these accounts
According to an RBI notification as of December 2, 2024, “The reasons were attributed to either inactivity for a long time or pending/periodic updation of KYC in such accounts. Reportedly, there were instances of customers facing inconvenience when they approached the bank branches for activation of inoperative accounts, including inadvertent errors in customer details such as mismatch in name, etc. It was also observed that a few banks have a large pendency of accounts that are due for update/periodic updation of KYC, resulting in such accounts getting frozen for further transactions as per the bank's internal policies.”
The RBI has advised banks to take necessary steps urgently to reduce the number of inoperative/frozen accounts and make the process of activation of such accounts smoother and hassle-free, including by enabling seamless updation of KYC through mobile/internet banking, non-home branches, video customer identification process, etc.
For Direct Benefit Transfer account
RBI has asked banks to help the process of account activation by adopting an empathic stance in these situations, as these accounts primarily concern members of the underprivileged segments of society. Additionally, banks may plan special initiatives to help activate frozen or inactive accounts.
For Aadhaar updation
Banks can help customers update their Aadhaar details through branches that offer Aadhaar-related services.
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