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Banks Not Issuing Debit Cards For Dormant Bank Savings Accounts

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As per a leading dailies report, in a bid to prevent fraudulent transaction and also to save on cost, banks are not issuing debit cards for dormant accounts suo moto. So, if you too maintain a banks savings account which you have not used for long and it has turned into an inactive account then debit card for the same shall not be renewed on its own.

 
Banks Not Issuing Debit Cards For Dormant Bank Savings Accounts

"For a bank, it is not prudent to keep servicing dormant accounts. One, the risk of fraud like money laundering increases. And second, there is the cost of maintaining such an account. So, banks have stopped issuing cards suo moto unless approached by the customer," Bharat Panchal, CRO, FIS Global, a financial services company said in the daily.

In accordance with banks, salary account customers on changing jobs do not use their previous zero balance salary accounts and consequently these turn dormant after a span of time. Furthermore, the publication said that the decline in issuance of debit card could have been much sharper had it not been offset by an increased usage by rural India through Jan Dhan Accounts.

In Jan Dhan account, account holders are issued Rupay cards and with 13.5% growth YoY in the number of these accounts to 296.8 million as of November 2019, ownership of such debit cards among poor families increased to 80% from 75% in a year.

GoodReturns.in

Story first published: Monday, December 23, 2019, 15:29 [IST]
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