Banking is a huge game for both the customers and the banks. There are a lot of things that are taken care of. And when it comes to the rules and regulations imposed by the central bank. They are very strict. So there is no way around for the banks other than following those.
I am telling you about the regulations of the central bank that is the Reserve Bank of India. Because what we are going to discuss today is the part and parcel of the regulations of RBI. The topic of discussion for the day is the “Dormant Bank Account”.
Everything you need to know about this type of account will be covered today. Everything in the sense the major things that you should not miss.
Why does a Bank Account turn Dormant?
The first and the foremost thing to know.
Why does this happen?
The short answer which I have already given but in a passive way is. It is a regulation imposed by the Reserve Bank of India.
But that does not cover it all. So the actual reason is. When a customer does not make any transaction in the bank account for a period of more than 24 months. In such a case, the account is turned dormant.
Is there any Other Term Used?
Yes, there is another term as well and that is “Inoperative Bank Account”. In the future, if you ever come across an “Inoperative Bank Account”.
Then you should not get confused. Because dormant and inoperative bank accounts are one and the same.
Can a Dormant Account be Activated?
Yes, if the customer wishes to get access back to the account. Then he or she can approach the bank and request it to reactivate the account.
The process to do it is very simple. There is an application format that is accepted by the bank. The customer has to fill it and submit the application in order the reactivate the account.
Does the Bank Charge to Reactivate the Account?
This totally depends upon the internal policies of the bank. If the management of the bank thinks they should charge for this. Then there will be some charges imposed.
However, even if there are charges that can not be heavy, they will be net to a nominal range.
What happens to the Remaining Balance in the Account?
The remaining balance in the bank account will be safe. The customer has the right to withdraw the money once the account is activated. So there is nothing to worry about it.
Can I Reactivate the Dormant Account Online?
No, the dormant accounts can not be activated online. In fact, all the types of access to the account will be blocked by the bank.
So there is no way to get it done online. The customer has to do it offline only. If you are interested in reactivating your dormant account.
Then you can read more about the process on Bank With Us. The reactivation process is a whole topic of discussion in itself.
Is Going to the Home Branch Necessary?
If the customer is in the hometown where he or she owns the bank account. Then visiting the home branch makes the process very easy.
But in case the customer stays in some other place in India. Then any other branch of the same bank can be visited and the request can be submitted there.
Does This Happen With Loan Accounts?
No, this does not happen with the loan accounts like home loans, personal loans, etc.
The banks turn the account dormant in order to make sure that the unattended accounts are not misused. And it is actually necessary to block access to unattended bank accounts. If not the fraudsters online are always looking for such accounts.