Dormant Account: How to activate a dormant account? Do you have to pay any charge for this?

Many of us have more than one bank account. One for salary, one for savings, and an old student account that is just lying around. Often, we forget to use these old accounts. Then one day, when we need that account, we come to know that the bank has made it 'dormant', that is, it has temporarily closed it.

It is natural to panic after hearing this. Many questions come to mind - "Is my money lost? How do I get it activated again? Will the bank charge any fee for this?" If you are also confused about this, then stop worrying. Today, we are going to tell you everything related to dormant accounts.

What is this dormant account after all?

As per RBI rules, when you do not make any transaction in your savings or current account for 24 consecutive months (i.e. 2 years), that is, you do not withdraw money, deposit money, issue cheques, do online fund transfer (NEFT/RTGS/IMPS/UPI), etc., then the bank puts that account in the 'dormant' category.

Why does the bank make your account dormant?

The bank does this not to harass you, but for your security. An account that is not used for a long time increases the risk of fraud. By making the account dormant, the bank stops most of the methods of debit (withdrawal of money) on it, so that no one can misuse your account.

How to activate a dormant account? (Step-by-step process)

It is very easy to reactivate a dormant account. For this, you have to follow these steps:

Step 1: Visit your home branch

You have to visit the same branch of the bank where you opened your account. Dormant accounts cannot usually be activated from any other branch or online.

Step 2: Write an application

You have to submit a written application to the bank to reactivate your account. In this, you have to mention your name, account number, and that you want to restart your account.

Step 3: Submit your KYC documents

Since your account has not been in use for a long time, the bank needs to re-verify your identity and address. For this, you have to submit self-attested copies of your KYC (Know Your Customer) documents:

Proof of identity: PAN card, Aadhaar card, passport, voter ID.
Proof of address: Aadhaar card, passport, or latest electricity or phone bill.

Make sure to carry the original documents with you so that the bank officials can verify them.

Step 4: Make a small transaction

After submitting your KYC, the bank officials may ask you to make a small transaction (like depositing Rs 500 or 1000) to activate the account. This is proof that the account is now active again. Within 24 to 48 hours of completing these steps, your account will be fully activated again.

The biggest question: Is there any charge for this?

No! As per the guidelines of the Reserve Bank of India (RBI), no bank can charge any charge or penalty for reactivating a dormant account. It is a completely free process.

So then why does the bank deduct money?
The money that the bank deducts is not a reactivation charge. It is a penalty for not maintaining the 'Minimum Average Balance', which is imposed before your account becomes dormant. Once the account becomes dormant, the bank cannot levy any minimum balance penalty on it.

What if the account is more than 10 years old?

As per RBI rules, if there is no transaction in an account for 10 years or more and no one claims the money lying in it, then the bank transfers that money to the 'Depositor Education and Awareness Fund' (DEAF).

But don't panic, your money is still safe. You can still claim your money back from DEAF later by visiting your branch, following the proper procedure and proving your identity.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.