In this article, we will look at whether your bank account has become inactive and, if so, how to reactivate it. A bank account is usually labeled inoperative or inactive after being inactive for more than two years. This category was created because financial institutions must maintain records for each account, and maintaining inactive accounts can be time-consuming and costly. You can usually restart an inactive account by initiating a deposit or contacting your bank, if you have one. However, if an account has been dormant for more than ten years, the bank may have handed over any unclaimed funds or residual balance to the Depositors Education and Awareness Fund of the Reserve Bank of India.
Ways to reactivate a bank account that became inactive
It would be helpful if you contact the RBI to claim the money from this fund. Following RBI guidelines, several public sector banks in India now require that both savings and current accounts be tagged as inoperative if there have been no transactions for more than two years. An inoperative account has had no customer-initiated transactions for a continuous period of two years; Bank-initiated transactions, such as interest credits or service charges, are not considered customer-initiated transactions for this definition. The bank will notify the account holder when an account is designated as inoperative and will inform the account holder of the status of the account.
By making a transaction within a predetermined time period, often around 90 days, the account user will have the opportunity to reactivate it. If you have a public sector bank account that has been inactive for some time, it is advisable to check its status and, if necessary, make a transaction to keep it active. You can do this by going to your bank’s physical location or using its mobile or online banking services. Keep the following tips in mind to prevent your account from becoming inactive: Make sure your account has at least one transaction every two years. Create a standing order to automatically transfer money from another account to your bank account regularly.
Make recurring payments by linking your bank account to a mobile wallet or UPI app. Inform your bank and request that it maintain your active status if you expect prolonged inactivity. Banks often do not charge customers to reactivate inactive accounts. However, banks may charge for a variety of services related to dormant accounts, such as providing account statements or transferring the remaining balance to a suspense account. However, ignoring bank notifications about KYC updates or reactivating transactions can lead to unnecessary inconvenience while completing a transaction.
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Source: vtt.edu.vn