Bank customers news: According to RBI notification on unclaimed deposits and inactive, ‘Savings and current accounts should be considered inactive if there has been no transaction in an account for more than two years.’
Bank customers news: If there has been no transaction in a savings or current account for more than two years, then the account will be considered inactive or dormant. Accounts which have not been used for more than two years will be noted by banks and put into separate ledgers.
According to the RBI notification on unclaimed deposits and inactivity, ‘Savings and current accounts should be considered inactive if there has been no transaction in the account for more than two years. For the purpose of classifying an account as ‘dormant’ both types of transactions i.e. debit and credit transactions made at the request of customers as well as third parties should be considered.’
How to activate inactive account?
According to HDFC Bank, the complete process for customers to activate inactive accounts is explained below.
1- Visit the branch and submit written application along with operational instructions for the account along with your signature.
2- Submit self-attested proof of identity and address.
3- If you do any transaction after this, your account will be activated once again.
How to activate account?
According to IDFC FIRST Bank, the process to activate it is given below.
You have to submit a written application to the bank. Joint accounts will require signatures of all account holders.
You will have to submit your KYC (Know Your Customer) document. Address proof, PAN card and identity documents will be required. After this, if you make a transaction, the account will be reactivated.
Interest rate on dormant account
Interest on savings bank accounts will be credited on regular basis whether the account is active or not. According to RBI, the amount left unclaimed with the bank after maturity of the fixed deposit receipt and the income not paid will earn interest at the savings bank rate. At the same time, according to RBI guidelines, ‘No fee should be charged by the bank for activating a dormant account.’
