A bank account goes dormant when there has not been any activity on the part of the customer—like deposits, withdrawals, or transfer of funds—for two years. Although your money is secure, you will be unable to access the account until the account is reactivated. Many people have learned this the hard way when they attempt to take out their money and are turned down.
Why do accounts go dormant?
Reasons behind dormancy tend to be universal and include forgetting an old savings account, moving house without amending KYC information, or simply not having the need to use the account for years. Banks will send reminders now and then, but it is your responsibility that your account does not become dormant.
Steps to revive your dormant account
To re-open a sleeping account, you will need to visit your bank branch with KYC documents—your Aadhaar card, PAN card, and address proof typically. Fill a re-activation form and, in most cases, deposit or withdraw a small amount. When the bank verifies your documents, your account would be re-opened, typically within 24–48 hours.
Can you re-open it online through online banking?
Most banks allow reactivation or uploading partial KYC updates through net banking or mobile banking. Nevertheless, a visit to the branch is rather inevitable in the event of dormancy for over one year or KYC mismatches. It would be advisable to call your bank's customer care first before visiting.
What if the account is dormant for over 10 years?
If an account remains untouched for 10 years, the funds are transferred to the RBI's Depositor Education and Awareness (DEA) Fund. You can withdraw your money, but it will take longer and RBI and bank coordination will be needed.
FAQs
Q: Do I lose money in a dormant account?
No, your money won't be lost. But you cannot access it until your account is activated.
Q: Do I pay some charge to re-activate a dormant account?
The majority of banks do not charge you to re-activate, but you may be required to update the KYC documents.
Q: Can I close a dormant account directly?
You will have to re-activate and then close formally.
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