Facing fund crunch after job loss? Here is how to unlock your dormant bank account

By: |
August 29, 2020 6:58 PM

Job losses and lack of new opportunities have forced many people to leave their rented accommodations and go back to their respective hometowns.

Covid-19 pandemic, Covid-19 lockdown, economic slowdown, job loss, cash crunch, Know Your Customer, KYC, dormant bank account, KYC update, how to activate a dormant bank accountIt’s difficult for those living in distant places to access the money locked in dormant bank account(s), if any, at the time of cash crunch.

Private sector employees are suffering the most currently as the Covid-19 pandemic has stalled economic activities, forcing many organisations to down their shutters. Job losses and lack of new opportunities have forced many people to leave their rented accommodations and go back to their respective hometowns.

In such a situation, it might also have become difficult for them to access the money locked in dormant bank account(s), if any, at the time of cash crunch.

If you have also faced a similar situation, then there is no need to worry. Here is how a dormant bank account may be made active by updating Know Your Customer (KYC) from another location.

“The pandemic and lockdown have encouraged banks to make more services available online so that people are not denied access to banking services during these tough times. Banks allow customers to revive their dormant savings accounts without visiting the branch,” said Adhil Shetty, Co-founder and CEO, BankBazaar, adding, “Interestingly, this was possible even before the lockdown.”

“The procedure to do this is very simple. All you need to do is drop a mail to the concerned branch where you have an account, requesting them to reactivate your dormant account. You would also have to share copies of your identity and address proofs over the mail for KYC purposes. The bank will activate your account within a couple of days of receipt of your request,” he said.

“It is better to close accounts that you do not use regularly,” Shetty further said.

However, due to increasing cases of cyber crimes, many banks may not encourage people to update their KYC remotely.

“To prevent fraud, we ask the holders of dormant accounts to visit the bank in person to update their KYC. For senior citizens living in the same locality of the bank branch, however, provision of doorstep service is there, where an official of the concerned branch visits the home of an elderly client for the purpose of updating KYC,” said Hari Shankar Prasad, a Branch Manager with Bank of Baroda.

When asked what an account holder staying at another place would do, Prasad said, “If an account holder is staying in another city, he/she may visit the nearest branch and request for KYC updation.”

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