Here’s how you can reactivate your inoperative bank account

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Open accounts in different banks is a very common practice. However, managing multiple bank accounts can become a tedious task and there can be instances of an account becoming inactive.

According to RBI, if there has been no transaction in the bank account for a period of two years, then the bank will classify that account into an inoperative or dormant account. This classification is applicable for both savings and current accounts.

To keep the bank accounts active, one should make transactions from their accounts on a regular basis and through NetBanking, this can be achieved easily.

No extra fee charged for reactivating the account

According to the former manager of Bank of India, Amardeep Kaushik, as per the RBI rules, no fee is charged for reactivation of the account. However, he recommends that those who are not making any transaction should close their accounts on time.

Bank will intimate account inactivity to customers

The bank generally communicates this to the customer when there is no activity in their account for about one year. They also keep trying to contact the account holder for two to three months, in case there isn’t any response from them. If still there is no response, the bank will deactivate the account for 2 years. The account is declared inoperative in case of no valid transaction for two years.

All banking services barred

Banks will stop ATM, internet banking, phone banking, and other services from an inactive or inoperative account. The banks will also credit the interest on the account regularly.

How much time will it take?

It takes around 24 hours for an inoperative account to get activated again. For activating the account, a person has to submit an application seeking account reactivation to the branch manager. The application should provide a reason for the account to be inoperative and explain the purpose for activating again. One has to submit documents like identity proof, passbook, or bank cheque book. After the completion of KYC, the bank will put the customer’s account in active mode within 24 hours.