Do you have more than two bank accounts but do not use them often? If yes, then you must ensure that you either reactivate or close the account. As per the Reserve Bank of India guidelines, any savings account or current account which has seen no transactions for two years, will be deemed inoperative or dormant. Here are a few tips on how to reactivate your account.
Why does your bank account become inoperative or dormant?
- If there has been no transaction in the account over a one year or more, then it becomes inactive.
- However, if there has been no transaction for two whole years, then the account automatically becomes dormant.
- Only a savings account or current account can become dormant.
- When you cannot make any transaction through any banking channel, be it ATM/phone/online.
- An inoperative account may not affect your credit history, but to avoid fraud, it is better to reactivate it.
- According to a World Bank report, India accounts for 195 million of the 460 million adults with dormant accounts around the world. At 43 per cent, the rate of dormancy is quite high measures to keep your account active.
