Stories
Forgotten Bank Account? Reactivate Dormant Funds Before They Become Unclaimed!
- •A bank account becomes inoperative after two years of no customer-induced transactions, as per RBI rules.
- •Inoperative accounts do not mean lost money; funds remain yours but transactions may be restricted until reactivation.
- •If an account remains untouched for 10 years, the balance is classified as an unclaimed deposit, requiring banks to report it.
- •To reactivate, contact your bank, complete KYC, and provide necessary documents; RBI advises banks to activate within three working days.
- •Regularly check old accounts and consider formally closing unused ones to avoid future complications.
Key Questions Answered
Under Reserve Bank of India rules, a savings or current account is classified as inoperative when there are no customer-induced transactions for more than two years. Bank-levied service charges and interest credited by the bank do not count toward keeping the account active.
To reactivate an inoperative account, you can contact the bank, complete the required KYC and customer due diligence, and update your details. RBI advises banks to provide KYC update facilities at all branches, including non-home branches, and complete activation within three working days.
If an account remains untouched and inactive for 10 years, the balance is categorized as an unclaimed deposit. Banks then transfer these funds to the RBI's Depositor Education and Awareness Fund, though the money still belongs to the depositor or legal heirs who can claim it.
