For various factors, a majority of bank customers struggle to run their account regularly for a significant amount of time. These unserviceable accounts are subject to manipulation. This does not arise while the account is in service, since both the customer and the bank are continuously attentive. That being said, if the account does not have transactions for a long duration of time it becomes dormant. At present, for different reasons, an account holder can not be able to run his/her account consistently for a significant amount of time. It is this time of nonappearance from regular account activities that makes the account prone, as per SBI, to fraudulent offences. A two-year non-transaction account other than transactions by means of a debit of the relevant bank charges or credit of periodic interest by the Bank shall be declared to have been inoperative. And as the account becomes inactive, it remains intact in its basic existence.
Hassles you may face if your account is inactive
You might feel it's a concern, but then you know how much it will annoy you. You didn't get the SMS alerts, on your registered mobile number. You will not be in a position to immediately withdraw your number. The most worrying condition is not being able to get our cash on necessities and dormant bank account brings us to that. You can not even access your account online and manage online transactions. There is a contrast between a bank account that is inactive and an inoperative one. When a bank account is not used and no legitimate money receipt or withdrawal transaction has been rendered within one year, the bank will notify the operator of the account. The account owner will be notified by email or post two to three months in advance if the bank does not receive a reply then their bank account condition will be classified as inactive. The inactive bank account is then regarded as 'inoperative' or 'dormant' if the inactive status lasts for two years, and the same is confirmed to the account manager. That being said, even though a bank account has been deemed inoperative, it is possible to enable an inoperative account under a certain protocol recommended by the bank.
First of all, find and confirm your account
First, figure out whether or not the bank has already made the account inactive. You should go and check for them on the SBI website to find out whether your account is inoperable or not. Banks such as SBI hold a list on all accounts that have been unserviceable, and details of those accounts are available on their portals for quick search.
Support your bank with a written application
If you discover that your account has been inactive, issue a written application to your SBI Bank branch manager requesting revalidation of the unserviceable account. For a period of two years or longer, you must also state the cause for which the account was dormant. In the context of a joint account, all the joint owners of the account need to sign the application.
New KYC documents need to be submitted by the account manager along with the request for revalidation of the unserviceable account. KYC details include account holder's passport size photographs, PAN, identity and address proof that must be submitted with the application form to your SBI bank branch.
Procedure to make your dormant SBI account active
In order to make the account operational, you need to make some transactions using the account if the account has not yet been found inoperative but has been inactive for a long time. Once your account has been activated you can make certain transactions such as online banking, mobile banking, cheques, receiving fund transfer from your own bank account or via a direct transfer from a third party. You can also make digital transactions such as pay phone bills or other service bills using your SBI account, which is also known as a legal payment In compliance with RBI guidance, SBI does not impose any fees to make the inoperative account operational. You need to submit fresh KYC documents to re-start the inoperative account. After the bank has performed thorough research, the account can become operative. As per the customer's risk group, SBI services in the Inoperative Account can be permitted after due diligence. Due diligence will imply verifying the transaction's transparency, signature, identity authentication, and so on.
Check whether interest is paid into your account or not, in case you are unaware of your account has become inoperative. For example, if FD interest is added to your savings account on a regular basis, then the bank has not declared your account inactive. Remember, though, that interest will be added to the savings account, regardless of whether the account is inactive or operational. Experts recommend that account holders before they become inoperative should close their accounts that are not in service.
Points to remember
- No bank can categorize any inactive account prior to 24 months of inactivity
- If the applicant provides the right justification for inactivity in the bank account, then relief will be given for one year.
- And when it is an inactive account, interest on the balance will be credited regularly by the bank.
- Banks may have different dormant account reactivation procedures. Every bank has numerous inactive account reactivation procedures. Therefore, there may be some different rules from the procedure mentioned above.
- For an inactive or inoperative bank account, banks do not charge the minimum balance penalty.
- When you open your account, banks will inform you about what span of inoperation of the account will make the account categorized as dormant/inoperative.
- You will also be notified of the repercussions, including the reactivation fees according to the Tariff Schedule, three months prior your account is listed as a dormant, inoperative or regarded as an unused account;