How to Activate an Inoperative Bank Account?

Saving or current account which has not been operative for two years becomes inactive or inoperative. When an account becomes inactive, the depositor is unable to use the services connected with it. Banks will mark accounts that have not been used in more than two years and keep them in separate ledgers. In such cases, individuals wonder how to activate such an account. Here's how to reactivate the inactive bank account.

What is Inoperative account

A savings or current account should be considered inactive / dormant if there have been no transactions in the account for more than two years. Both the kind of transactions, i.e. debit and credit transactions induced at the request of consumers and third parties, should be considered when designating an account as "inoperative."

How to activate an inoperative account?

• Visit the branch and submit a written application with your signature and account operating instructions.
• Please provide self-attested evidence of identity and address.
• If you initiate any transaction, your account will be reactivated.

How to activate an account?

• Whether the account is single or joint, a formal application must be submitted to the bank, and all account holders' signatures will be required for joint accounts.
• You must provide your KYC (Know Your Customer) documentation. Address proof, PAN Card, and identification papers will be required.
• You must complete at least one financial transaction.

What happens if an account is inactive?

Banks convert dormant accounts that have been inactive for a long time and cannot be used to make payments, transfer money, withdraw funds, etc. When an account is marked as "Dormant," all customer-initiated debit and credit transactions are prohibited. Financial (cash deposit/withdrawal, fund transfer, IMPS, RTGS, NEFT, or any transactional mechanism such as UPI) and non-financial transactions will be covered (cheque book requests, debit card request).

Interest on savings bank accounts is credited on a regular basis, whether the account is active or not. If a Fixed Deposit Receipt expires and the proceeds are not paid, the money left unclaimed with the bank will collect interest at the savings bank rate.