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.
A written application must be made to the branch manager, requesting for re-validation 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.
Fresh KYC documents need to be submitted along with the request for re-validation of the inoperative account. This includes photograph, PAN, proof of address and proof of identity as acceptable by the bank.
In order to make the account active, the account holder must carry out some transaction in the account such as depositing some amount.
According to RBI guidelines, no charges are to be levied by the bank to make the inoperative account active.
- 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.
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