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Realising a bank account has become inactive or dormant is common. This usually happens to old accounts that people have not accessed in quite a while.
Here’s more clarity on why this happens and how to reactivate such accounts.
When you make no transaction in your bank account for 12 months, the account gets classified as inactive.
When you make no transaction in your bank account for 24 months, the account gets classified as inoperative or dormant by the bank.
Accounts are classified as active, inactive, and dormant to reduce the risk of frauds, and any kind of misuse with your account. With such a segregation, banks get to know about the risks involved in these accounts and can call for thorough checks to confirm the same.
You will be informed at least three months in advance before your account is considered as dormant. You may also be informed about the procedure to re-activate your account. If the bank still sees no subsequent transactions, your account could be classified as a dormant bank account.
If you provide the reasons for not operating the account, your bank may consider your account as an operative account for one more year. If you fail to operate the account during the extended period, it will be classified as a dormant account when the period ends.
You would continue to receive interest on your savings account even after the reclassification as a dormant or inactive account.
Note: Bank-initiated transactions, such as service charges, interest credited, or the penalties levied by the bank, will not be considered for re-classification.
When an account is flagged as “Dormant”, all customer induced debit and credit transactions will be blocked. Transactions included will be both financial (cash deposit/withdrawal, Fund transfer, IMPS, RTGS, NEFT, or any transactional mode such as UPI) as well as non-financial (cheque book requests, debit card request).
The process of reactivating your bank account is a hassle-free one:
No fees or penalties will be charged to reactivate a dormant account.
The information provided above will help you reactivate your dormant savings account.
To avoid keeping your account dormant, just ensure that you use your account regularly. Conduct one transaction, online or offline, every year, to prevent it from turning inactive.
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