Why accounts go dormant
Banks classify an account as dormant if there has been no customer-initiated activity for ten continuous years. This includes savings accounts, current accounts, and fixed deposits that have matured without movement. Once an account becomes dormant, it forms part of the bank's inactive ledger, stops earning interest in some cases, and cannot be used for withdrawals or online transactions thereafter. The rules come from the Reserve Bank of India, which requires banks to periodically contact customers before marking accounts inactive.
How to begin the reactivation process
Reactivation always begins with updating your KYC details with the bank. You have to go to the home branch with your Aadhaar, PAN, a recent passport-size photograph, and proof of address, in case it has changed. The bank verifies your identity, updates your details, and processes a reactivation request. Most often, banks ask you to make a small deposit or withdrawal to show “customer-initiated activity,” and within a few days, your account becomes active.
Charges and delays you should expect
While RBI rules forbid banks from levying any charges for rendering an account dormant, they can still impose certain service charges after you revive it. These are in the form of SMS charges, minimum balance penalties or cheque-book charges that would have piled up silently in the background. Some banks take as long as two weeks to verify old KYC documents or signatures, and several customers find that their registered mobile number or email ID is obsolete, which delays the process even further. If the account contains a very old balance, the bank may also have to verify that this has not already been transferred to the RBI's Depositor Education and Awareness Fund.
What happens if the money has moved to RBI
The account can still be revived if the bank transferred the funds after ten years of inactivity. You need to reactivate it and then place a claim for the transferred amount. Your documents are sent to the RBI by the bank, and the refund is credited after verification. This part normally takes the longest because there are back-end checks on identity, signatures, and historical account data.
FAQs
Can I reactivate a dormant account online?
No. RBI rules require physical verification for dormant accounts. You must visit the home branch with your KYC documents to begin the process.
What if my signature has changed over the years?
Banks usually ask for fresh signature samples and may require a notarised declaration confirming the change. In some cases, they request an in-person verification with a bank officer.
Is my money safe if the account has been dormant for more than ten years?
Yes. Banks must transfer the funds to the RBI’s Depositor Education and Awareness Fund, from where you can claim your money anytime after completing the reactivation and verification steps.
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