Dormant Account Activation: If you are also among those people who have not used their bank account for a long time, then your account can become a dormant account.
According to the rules of Reserve Bank of India (RBI), the bank declares those accounts as inactive or dormant in which no customer activity is seen for 10 years. That means neither money has been deposited nor withdrawn during this period. In this situation, the bank puts it in the dormant category, after which you will neither be able to withdraw money from that bank account nor will online transactions be useful. This also includes savings accounts, current accounts and such fixed deposits which have matured but no activity has been seen in them for a long time.
Many disadvantages of account being dormant
There are many disadvantages of dormant account. In this, the facility of withdrawing money from net banking, online banking, ATM stops. This means that even if there is money in the account, you will not be able to use it when needed. Along with this, auto debit also stops, like if you have set auto debit for TP recharge, electricity bill or insurance premium, then that account will fail if it becomes dormant.
The alerts you receive through SMS and email from the bank will stop. Due to this, you remain deprived of knowing many important information like change in interest rates or any change related to account. It has many other disadvantages. If an account remains inactive for a long time, the risk of hacking also increases.
How to reactivate the account?
If you want to reactivate your dormant account, then for this you will have to update KYC first. You will have to go to your home branch with your Aadhar card, PAN card, passport size photo and address proof. The bank updates the details after checking your identity and documents. Then the process of reactivation starts. Many times banks ask you to do transactions of small amounts like Rs 100 so that the transactions done in it can be recorded. Usually your account gets activated after some time.
How much is the charge?
The Reserve Bank has clearly stated that the bank does not levy any charges on the account when it becomes dormant. However, after account reactivation, service charges like SMS alerts, minimum balance or check book charges may be applicable.
What if the money has been transferred to RBI?
In case the account is dormant, if the bank has transferred your money to RBI’s DEAF i.e. Depositor Education and Awareness Fund, then there is no need to panic. After opening the account, you can claim money from RBI through your bank. This process is a bit lengthy as the bank carefully examines your past records, signature and identity. However, your money remains safe. According to RBI rules, verification for reactivation of dormant account is not possible online, for this you will have to be physically present in the bank.
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