Wednesday, 26 Jun 2019

Why did SBI make my account dormant?

There are two distinct term used by RBI . One is inactive account and other is Dormant or Inoperative account. According to RBI an Current or Saving accounts become inactive if there is no transaction by the customer for the past 12 months .Current account or Saving account becomes inoperative or dormant if there is no transaction by the customer for the past 24 months . Here customer transaction means deposit/withdrawal transaction by the customer through Bank Branch/ATM/ Online/ Netbanking/Mobile etc.

RBI has clarified that if the account holder receives dividend in its account it will also be counted as Customer transaction. So in that case if there is no transaction from the last date of receipt of dividend in the account the countdown will start for 12 months incase of Inactive account and 24 months in case of Dormant account.

WHy bank makes account inactive/dormant?

1.There is fear of misuse of such account

2. Bank updates our ledger every day and it is considered as cost for the banks. An inactive/dormant accounts means customer is not serious hence putting extra burden on the bank as bank has to deploy staff to look into such account wasting both the time and money of the Bank.

According to RBI , inactive account can be activated by simple transaction by the customer/or through phone banking request.

For activating Dormant account the customer has to visit the Home branch and has to submit all necessary KYC documents.

In reality Banks will ask you to visit the branch and then they will validate the KYC document at the branch, only then they will allow the customer to resume normal banking.


For your information, many international frauds used to happen through such long inoperative accounts in the past.

Trust I have answered your question in a simple way

Regarding procedure for reviving the dormancy, each bank could have certain procedures.

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