An inactive bank account is termed as an inoperative bank account. An account becomes inoperative when you do not carry out any transactions for more than 2 years. If your account becomes inoperative, you won't be able to carry out any transactions. This applies to both current and savings bank accounts.
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Your bank account becomes inoperative when there are no transactions for a long time. The main intention of making your bank account inoperative is to safeguard from any fraudulent activities.
If there is no valid transaction receipt or withdrawal of money from your bank account for a year, the bank will contact you. In case you do not respond, you will be informed through an official medium of communication (email or post) regarding the change in status to "inactive", two to three months in advance.
If this inactive status remains for 2 more years, the bank account is treated as "inoperative" or "dormant."
If your bank account is inoperative and you want to make it active, there are certain procedures prescribed by the bank. In this blog, we will discuss certain steps you must follow to activate an inoperative bank account.
1. Search your account
You must first identify if your bank account has become inoperative. You can find this out by visiting the bank website. Each bank maintains the database of accounts that have become inoperative and the information will be available on its website.
In case the account has been made inoperative by the bank, the next thing you must do is send a written application to the branch manager requesting revalidation of the inoperative account. In the written application, you must mention the reason why you did not operate your bank account for more than 2 years. If your account is a joint account, all the account holders must sign the application.
3. KYC documentation
You must submit the fresh KYC documents along with the request for revalidation of the inoperative account. The KYC documents required are photograph, PAN, proof of address and proof of identity.
As per RBI guidelines, banks will not charge any money to make the inoperative account active.
1. Your account will not become inoperative; if interest on a fixed deposit is credited to your SB account on a regular basis.
2. It is advisable to close the bank account which is not in use before it becomes inoperative.
3. Interest on SB account will be credited to your account even if the account is inoperative.
See Also: Tips to safeguard banking transactions
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