Dormant Bank Account: If your bank account has been closed for two years and there’s been no activity in it, it may be closed. This is called dormancy. This disables all services like debit cards, ATMs, and online transactions. This could lead to your money being stuck. Let’s learn how to activate it.
In today’s economic era, many people have multiple bank accounts. Some people have more than one bank account out of compulsion. Apart from this, people doing private jobs keep changing companies from time to time for their growth. Due to which, when they go to a new company, they open a new bank account. In such a situation, the old bank account gets closed. If the old bank account is not used, it will get closed. This is called dormant. According to the new guidelines of Reserve Bank of India (RBI), it has become easier to reactivate the closed bank accounts.
According to Reserve Bank of India (RBI) regulations, a bank account is considered inactive if there are no transactions for 12 months, and dormant if there is no activity for 24 months. Upon closing a bank account, debit card, ATM, and online transactions are blocked. Savings interest, refunds, or dividends continue to accrue, but the account cannot be fully utilized.
Auto-payments or direct debits will not work. If the account remains inactive for a long period, any remaining funds may be transferred to a central fund, such as the Depositor Education and Awareness Fund (DEAF).
Banks typically send customers a reminder after 12 months of inactivity, warning them that their account may soon be declared inactive. Once an account is inactive, certain restrictions apply. Many banking services are unavailable until the customer reactivates the account.
Now new methods will be available for KYC update
Under the new RBI regulations, customers can now update their KYC information at any branch, whether it’s their home branch or another one. Previously, customers had to perform this process exclusively at their home branch, which caused inconvenience to many. Additionally, banks are now required to offer Video-Based Customer Identification Process (V-CIP). This process allows customers to verify their identity via video call. This is especially useful for those who live in remote areas and cannot reach a bank branch.
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