How to activate an inoperative bank account

An inactive or dormant account with a bank is termed an inoperative account. An account becomes inoperative if there are no transactions in the account for a period of over two years.

Once the account becomes inoperative, the account holder cannot transact in the account. It is possible to activate an inoperative account by following a procedure prescribed by the bank.

Account search

The account holder can search on the bank’s website whether his account has become inoperative. Banks are required to maintain a database of all accounts that have become inoperative available for easy search on their websites.

Application

A written application must be made to the branch manager, requesting for revalidation of the inoperative account. It should also carry the reason for not operating the account. The application needs to be signed by all joint holders of the account.

KYC documentation

Fresh KYC documents need to be submitted along with the request for revalidation of the inoperative account. This includes photograph, PAN, proof of address and proof of identity as acceptable by the bank.

Transaction

In order to make the account active, the account holder must carry out some transaction in the account such as depositing some amount.
Charges

According to RBI guidelines, no charges are to be levied by the bank to make the inoperative account active.


Points to note

- If interest on fixed deposit is credited to the savings account on a regular basis, then the account does not become inoperative.

- It is in the best interest of an account holder to close an account which one does not wish to use before it becomes inoperative.

- Interest on savings account is credited irrespective of whether the account is inoperative or active.



(Content courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta)