Banks stop issuing debit card to these accounts to reduce frauds, cost
Posted On : Monday, December 23, 2019, 12:56 PM
If you have not done any transaction in your savings account for a long time and it has become dormant then your debit card may not get renewed on its own as banks have stopped issuing debit cards for dormant accounts suo motu. Banks are doing this to save cost and reduce frauds, said a report in the Times of India. “For a bank, it is not prudent to keep servicing dormant accounts. One, the risk of fraud like money laundering increases. And second, there is the cost of maintaining such an account. So, banks have stopped issuing cards suo motu unless approached by the customer,” the publication quoted Bharat Panchal, CRO, FIS Global, a financial services provider, as saying.