Savings Account
Summary: Learn about dormant accounts- what they are, why they become inactive, and how to address them. Explore solutions for managing dormant bank accounts.
10 Mar 2022 by Team FinFIRST
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Bank accounts become dormant if they remain unused for a set time frame. Here is how you can reactivate it.
We must adhere to many rules when it comes to our bank accounts. One of the essential guidelines is regularly using our account, keeping it active. If we fail to do so, the account will be considered dormant.
A dormant account is an account that has been inactive for an extended length of time. Read on to get a deeper understanding of it.
What is a dormant bank account?
As per RBI guidelines, asavings accountwill be treated as inoperative / dormant if there are no transactions in the account for over a period of two years. To reduce fraud, banks convert accounts that have been idle for long into dormant accounts. You cannot make payments, transfer money, make withdrawals, and even log into your account when it has been declared dormant.
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What happens if your savings bank account becomes dormant?
Different financial institutions have different rules for a dormant account. If a dormant account has no balance, some institutions close it after a certain period. However, if you are associated with IDFC FIRST Bank, you will be informed before your account is closed.
Below are some of the services/transactions that are not permitted if your account is dormant:
•Change of residence
•Renewal of an ATM or debit card
•Addition or removal of a joint account holder
•Change of signature
•Transactions through internet banking or at a bank branch
To ensure your account stays active, you must conduct any financial transaction in the account such as check transactions, cash withdrawals, outbound bills, cash deposits etc. regularly.
How to reactivate a dormant account?
Banks cannot levy additional fees while reactivating a dormant bank account according to RBI norms. To reactivate a dormant account, you must submit a completed application form to the bank detailing the reasons for the account's inactivity. You must be physically present at the branch, carrying valid residence and identity proof.
Once the above process is done and upon the bank official’s confirmation, you should make at least one financial transaction in your account. Some of the relevant financial transactions are listed below:
•Deposit money using a cheque
•Deposits of cash into your account
•An ATM can be used to make a withdrawal or a deposit.
•Make an online transaction in your dormant account.
Regular transactions are essential to keep your account active. Ensure that you use all your bank accounts regularly. You can also prevent your account from becoming dormant by taking several actions such as conducting a transaction or withdrawing cash.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.
