What does dormant account mean?

Dormant account (sometimes known as inactive account) is a bank account which has no transaction (i.e. deposit or withdrawal, excluding charges imposed or interest credited) for a continuous period of at least 12 months.

What makes a bank account dormant?

YOUR bank account becomes dormant if you don’t use it to perform any transaction for two years. If you do not perform transactions in your account for an extended period and your bank has tried and failed to contact you over the required period of time the bank will qualify the account has dormant.

What do I do if I have a dormant account?

How to Reactivate your account?

1. Submit a written Reactivation Application. You will have to file a written application to reactive your dormant account.
2. Submit KYC documents. You will have to submit your KYC documents alongside your reactivation application.
3. Make a small deposit.

Are Dormant accounts bad?

Having dormant accounts won’t affect my credit rating What’s more, having a lot of dormant accounts exposes you to fraud risk because you’re unlikely to notice if someone is using a credit card you haven’t touched for months. You should also avoid excessive unused credit, and close dormant accounts.

How long can a bank account be dormant?

If you haven’t used your savings or current account for any transactions for over 1 year, the account becomes inactive. If the account has been inactive for 2 years, it becomes dormant or inoperative.

Can you close a dormant account?

RBI Norms: RBI has advised banks to check due diligence before closing the inactive account without any restrictions. Remember, your account will be treated as active as long as dividend or fixed deposit income is credited into the account.

Can I deposit money in a dormant account?

Reactivating dormant accounts Dormant bank accounts can be reactivated easily. To reactivate your account, you will need to make a transaction by any of the following methods: Cash or cheque deposits into your account. Withdrawal or deposit through an ATM.

Can you lose money in a dormant account?

Revenue also takes a hit when an account becomes dormant. Accounts are ultimately lost if the funds must be reported to the state. Banks that need to have a certain amount of funds available cannot include these accounts in their tally.

How do you get money from a dormant account?

You can reclaim funds from a dormant account at any time and the easiest way to do so is to contact your bank or building society account provider. You’ll usually be asked to provide as much information as possible about the account, including: The account number. The name of the account holder.

What is a dormancy fee?

What Is a Dormancy Fee? A dormancy fee was a penalty charged by a credit card issuer to a cardholder’s account for not using the card for a certain period of time.

Can I deposit money in a dormant bank account?