How to reactivate an inactive bank account
NEW DELHI: A bank account can become inactive if it is not used for two years. When an account becomes inactive, the depositor cannot benefit from the services associated with it. Banks can mark an account as inoperative after one year if a customer does not respond to emails, calls and letters from the bank.
The policy ensures that money in a bank account is not misused. This is why the regulator has asked banks to “play a more proactive role in finding the location of account holders whose accounts have remained inoperative”.
The Reserve Bank of India (RBI) has ordered banks to undertake an annual review of accounts that have not seen any transactions, credit or debit transactions other than periodic interest credit or debit transactions. service charge. If there are no transactions on an account for more than a year, banks are supposed to notify customers “in writing” and try to determine the reason.
If customers have changed bank account due to their house transfer, banks are supposed to take the details of the new account where money from the inoperative bank account can be transferred.
If the customer responds to the bank, they should mark the account as operational and give them a year to start operating it. “However, in the event that the account holder still does not perform the same during the extended period, banks should classify it as inoperative account after the expiration of the extended period,” according to the RBI circular.
REGULARIZE THE DORMING ACCOUNT
Customers must go to the bank branch and apply to activate the inactive account. A bank may activate an inactive account the next business day or may take longer depending on internal processes and the risk category of the depositor.
RBI has allowed banks to regularize customers’ bank accounts based on the risk category of the account holder. Therefore, banks may allow customers to manage dormant accounts when receiving KYC (know your customer) documents or request more due diligence. A bank may ask the customer for signature verification in addition to taking the KYC documents.
RBI has asked banks not to charge any fees for activating inoperative accounts. Interest on savings accounts should be credited regularly whether the account is operational or not.
In fact, if a fixed deposit matures and the proceeds go unpaid, the unclaimed amount from the bank will attract the savings bank’s interest rate.
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