An inactive bank account is termed inoperative if there have been no transactions in the account for over two years. Such dormant accounts with banks are termed as inoperative accounts. Once a bank account becomes inoperative, the account holder cannot transact using the account. The inactive or inoperative label applies to current or savings account.
There is a difference between an inactive and an inoperative bank account. If a bank account is not used, and no valid transaction of receipt or withdrawal of money has been made for one year, the bank will get in touch with the account holder. If the bank does not receive a response, the account holder will be informed through an email or post two to three months in advance, that their bank account status will be changed to ‘inactive’.
If the inactive status carries on for two years, the inactive bank account is then treated as ‘inoperative’ or ‘dormant’, and the same is notified to the account holder. However, even after a bank account has been termed inoperative, following a certain procedure prescribed by the bank, it is possible to activate an inoperative account.
Find your account
First, find out if your account has yet been made inoperative by the bank or not. You can go and search on the bank’s website whether your account has become inoperative. Banks maintain a record of all accounts that have become inoperative, and information about those accounts are available for easy search on their websites.
Send an application
If you find that your account has become inoperative, send a written application requesting for revalidation of the inoperative account, to the branch manager. You also need to mention the reason why the account was inactive for a period of two years or more. In the case of a joint account, the application needs to be signed by all the joint holders of the account.
KYC documentation
Along with the request for revalidation of the inoperative account, fresh KYC documents need to be submitted by the account holder. KYC documents include photographs of the account holder/s, PAN, proof of identity and proof of address to the bank.
How to make your account active again?
If your account has not been made inoperative yet but has been lying inactive for a long time, you need to make some transactions using the account, in order to make the account active. You can make transactions such as debiting the account through net banking, ATM, mobile banking, cheques, etc. or crediting the account either through another bank account of your own or through a third-party direct transfer.
You can also use the account to make automated payments like pay phone bills or other utility bills, which is also considered as a valid transaction. The bank does not levy any charges to make the inoperative account active, according to RBI guidelines.
Points to keep in mind
If you are unaware that your account has become inoperative or not, see if interest is deposited into your account. For instance, if the interest on FD is credited to your savings account on a regular basis, then your account has not been made inoperative by the bank. However, note that interest on the savings account will be credited irrespective of whether the account is inoperative or active. Experts suggest account holders should close their accounts, which are not in use, before they become inoperative.
