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A dormant bank account is one in which there is no transaction for 10 years. To restart it, the customer has to go to the bank branch, update KYC and do a small transaction.
New Delhi. If your bank account has not been used for a long time, it may become dormant. According to the rules of the Reserve Bank of India (RBI), if there is no transaction from the customer in a bank account for 10 years, then the bank puts it in the dormant category. This also includes savings, current accounts and such fixed deposits which are lying even after maturity. When this happens, withdrawing money from the account, online transactions or many services stop.
How to start reactivation?
The first step to reactivate a dormant account is to update KYC. For this, you will have to go to the home branch of your bank and take Aadhaar, PAN, a recent photograph and address proof. The bank checks your identity and documents and then submits a reactivation request. Many times the bank asks you to do a small transaction, like depositing or withdrawing Rs 100, so that the customer’s activity can be recorded.
Will there be any charges?
RBI has clearly said that banks cannot impose any charges on being dormant. But after reactivation of the account, service charges like SMS charge, minimum balance penalty or check book charge may be imposed. For many customers, the process may take a few days due to old documents, changed mobile numbers or signature mismatch.
What if the money has been transferred to RBI?
Even after 10 years, if the bank has transferred your balance to the Depositor Education and Awareness Fund (DEAF) of RBI, your money is safe. After reactivating the account, you can make a claim from RBI through the bank. This process is the longest because old records, signatures and identity are checked in it.
Can reactivation be done online?
No. According to RBI rules, physical verification is necessary for dormant accounts. Therefore, you will have to start the process by going to the branch itself.
