Need a bank account to manage your finances. But do you know that a simple mistake could deem your account permanently closed? Yes, you read that right! If you are careless, your bank account could remain inactive or dormant, making it impossible for you to perform transactions. Such inconveniences and losses can be very severe. Let us therefore know how to avoid this mistake.
Why Does a Bank Account Become Inactive?
As said by the Reserve Bank of India (RBI), if no transaction happens in your savings or current account for two years continuously, your account will now be classified as dormant or inactive. A transaction can be any activity like a deposit or withdrawal of funds. Once it is labeled dormant, then the bank might deny access, and hence you might face serious hindrances.
What Happens When Your Account Becomes Dormant?
Hindered Access to Transactions: You will not have access to your account for payments, withdrawals or transfers. Blockade of Services: Will cause a halt in critical services like RTGS, NEFT, UPI, or even debit card transactions. Cheque Payments: You will not be able to issue or clear cheques anymore. Time Wastage: You will have to go to the bank branch in order to reactivate the account which would take some time.
How Not Let Your Account Become Dormant Keep your account alive. It is as simple as this. Make at least one transaction yearly. It can be a deposit of or withdrawal of a very small amount. Keeping up activities is sufficient to keep the account active and avoid falling into dormant status.
How to Reactivate a Dormant Account
If your account is already dormant, don’t fret. You would still reactivate that. Here’s what to do:
- Go to Your Bank Branch:
- Visit the branch where you opened your account. Present Required Documents:
- Carry your identity proof, address proof, and any other documents requested by the bank. Complete the Process:
- Follow the bank’s reactivation procedure, which may include filling out forms or providing additional details.