How to Activate Dormant Account (2024)

FAQs

How to Activate Dormant Account? ›

How to activate a dormant account? To reactivate your dormant account online, you will need to submit an activation request to the bank via email or your bank's digital channels, such as internet banking and mobile apps. Alternatively, you can also visit your bank's nearest branch.

A dormant bank account is one that has no activity for over 2 years. Banks do this to mitigate fraud, comply with regulations, and reduce costs. You can reactivate your account by making a transaction or contacting your bank. Banks have regulations in place to activate dormant accounts.

In order to change the status of the account from "Dormant to Active," the account holder must personally deliver a letter to the bank together with the passbook for savings banks or the cheque book for current accounts and state the reasons why they haven't used the account in the past.

How to regularise a dormant account? You must visit the bank's branch and apply to activate the sleeping account. The dormant bank account can be activated on the next working day or may take longer depending on the depositor's internal processes and risk category.

The Reserve Bank of India (RBI) has stipulated that a savings account or current account is considered dormant if there are no transactions for more than two years. However, some banks may consider an account inactive after one year of inactivity and dormant after two or three years.

To reactivate an inoperative account, you need to contact the bank, fill out a form and provide the necessary documentations, and make at least one transaction therafter. While reactivating, you also need to maintain the minimum balance requirement.

There are no fees for reactivating dormant accounts, and banks cannot impose penalties for not maintaining minimum balances in such accounts. It's important to note that banks must still pay interest on savings accounts regularly, regardless of whether the account is active or not.

A dormant account is an account that has shown no activity for 15 years.

A bank account's holder is unable to conduct transactions once it is rendered inactive. However, dormant accounts are free of statute limitations. This means the beneficiary may withdraw funds at any time. You will need to activate your account to make a transaction.

Reactivating your dormant account

You'll need to provide detailed information to your bank or building society, such as the account number, holder's name, balance, and any statements you have. This will help verify your identity and reclaim your funds.

How do I recover money from a dormant bank account? ›

How Can I Claim My Money From a Dormant Account? Your first step is to contact the bank or other financial institution where you had the account. You'll need proper identification and you should have some proof that it's your money, such as a bank statement.

You can do this by getting in touch with your bank or by initiating a deposit. However, if your bank has remained inactive for over 10 years, the bank might transfer the rest of the amount or the unclaimed deposit to the Depositor Education and Awareness Fund of the Reserve Bank of India (RBI).

The time it takes for a bank to close an inactive checking or savings account can vary widely depending on the bank's policy. Typically, an account may be considered inactive after 12 to 24 months of no transactions. If it remains inactive, the bank might close the account, usually after notifying the account holder.

"Banks are not permitted to levy penal charges for non-maintenance of minimum balances in any account that is classified as an inoperative account. No charges shall be levied for activation of inoperative accounts," the rules said.

To reactivate your dormant account online, you will need to submit an activation request to the bank via email or your bank's digital channels, such as internet banking and mobile apps. Alternatively, you can also visit your bank's nearest branch.

Dormant accounts allow crediting of money, but you cannot withdraw from it. The individual should submit updated KYC to activate the account. Depending upon the financial institution and how long the account has been dormant, yes, you may be able to deposit money into a dormant account.

If you ignore your savings bank account and let it become dormant, you'll face limitations. You won't be able to write checks, renew your ATM/debit card, change your address on file, or perform any transactions through ATM, internet banking , or phone banking.

If you don't use your account for a long period of time the bank or building society may declare it dormant, but the length of time before this happens will vary between institutions. It could be as little as 12 months for a current account, three years for a savings account, or in some cases up to 15 years.