Sorry, but the bank won’t allow the activation of your inactive account without a visit to the home branch. They need to make sure they’re dealing with the real you! It’s almost like opening a new account altogether, requiring a thorough look into your documents and a chat with you to ensure everything is in order.
Inactive bank account
In the event that there have been no transactions or activity in a savings or current account for a period exceeding one year, the account in question is typically considered to be inactive or dormant. This is a standard banking practice that is usually followed. The banks keep a keen eye on the activity of all the accounts. Accounts that have not seen any form of transaction or movement for more than one year are flagged by the banks. These flagged accounts are then segregated and kept in different ledgers. This practice is primarily to ensure the efficient management of all client accounts and to maintain a clear record of active and inactive accounts.
What is Inoperative account
As Per the Reserve Bank of India’s (RBI) notice on unclaimed deposits and inactive accounts, an account is ‘inactive’ or ‘dormant’ if there’s no transaction for over one year. All types of transactions, whether debit or credit, customer-initiated or third-party, must be considered. The key idea is any fund movement, into or out of the account, counts towards the account’s status.
How to activate inoperative account
To activate a dormant account with SBI Bank, follow these steps:
Step1: Go to the branch and submit a signed written application as per the account’s operating instructions
Step2: Submit self-attested proofs of identity and address
Step3: Start a transaction to reactivate your account
How to activate account
As per SBI Bank’s official procedure, here are the concrete steps to activate your account:
- Submit a written application to the bank. Be aware that for joint accounts, signatures of all account holders are mandatory, regardless of whether the account operates singly or jointly.
- Ensure you submit your KYC (Know Your Customer) documents. This includes proofs of address, your PAN Card, and valid identity documents.
- Execute at least one financial transaction. This is a non-negotiable requirement.
What happens when account is dormant?
You’re unable to get SMS alerts on your registered mobile number, and worse, can’t withdraw money in emergencies. Sounds like a nightmare, right? Well, this is what happens when a bank account becomes dormant. Not only that, but you can’t even access your bank account online or carry out transactions.
Banks turn accounts inactive for a while into dormant accounts, their way of reducing fraud. This means you are unable to log in, make payments, transfer money, make withdrawals, or even log out.
Here’s a heads up! If your bank account isn’t used and there hasn’t been any transaction for a year, the bank reaches out to you. If they don’t hear back, your bank account is tagged as ‘inactive’. And if this status continues for two years and is confirmed by the account manager, your ‘inactive’ bank account becomes ‘inoperative’ or ‘dormant’.
Interest rate on inoperative account
Regardless of the account’s status, interest on savings bank accounts is consistently credited. If a Fixed Deposit Receipt matures and the proceeds are not claimed, the remaining amount will earn interest at the savings bank rate, as stipulated by the RBI.
Charges
In line with RBI guidelines, the bank is not permitted to impose any charges for reactivating an inoperative account.