Dormat Account: What is a Dormat Account and in how many years is it applicable on the account?

If your bank account has been lying unused for a long time, this news is very important for you. In fact, there are millions of people in the country who don't even know when their savings account, current account, or even an old FD has become inactive, or a dormant account. RBI rules are very clear: if there is no activity (such as deposits, withdrawals, online transactions, or check clearing) in an account for 10 consecutive years, the bank declares that account "dormant." This rule applies to all types of accounts.

Once an account becomes dormant, it goes into the bank's inactive list. Withdrawals from the account can become difficult, online transactions are blocked, the debit card may become inactive, and even when interest is accrued, it is sometimes not credited. RBI instructs banks to contact account holders, but often, due to outdated mobile numbers or unupdated email addresses, people don't realize their accounts have completed 10 years.

How to reactivate a dormant account?

The first step to reactivate your account is to update your KYC. This requires you to visit your home branch and submit identification documents, including:

Aadhaar Card
PAN Card
Passport-size photo
Address proof (if address has changed)

The bank will verify your documents and update the records. You may then be asked to make a small transaction, such as a deposit or withdrawal of ₹100, to reflect the new activity in the account. Typically, the bank reactivates the account within 2–5 days.

These charges may apply after reactivation:

According to RBI rules, banks cannot charge any fees for creating a dormant account. However, some old charges may arise after the account is activated, such as:

SMS alert charges
Penalty for not maintaining a minimum balance
Checkbook charges
Debit card renewal charges

These charges can often accumulate over years without the account holder even realizing it.

Additionally, if your mobile number, email address, or signature is too old, the KYC process can be lengthy. In many cases, the bank also checks whether the money in your account has been transferred to the RBI's Depositor Education and Awareness Fund (DEAF).

What if your money has been transferred to the DEAF Fund?
After the dormant account completes 10 years, the bank transfers the balance to the RBI's DEAF Fund. But there's no need to worry; this money is completely safe and you can claim it at any time. This requires a simple claim process at the bank.

Can a dormant account be activated online?

No... The RBI has made physical KYC verification mandatory, so you'll need to visit a branch to reactivate the account. However, if your signature has changed, the bank will record your new signature and may also obtain a written declaration if necessary.

So, activate your account before 10 years.
Don't let your bank account run for too long, and even making a small transaction once a year keeps your account safe and active. Otherwise, after 10 years, your money will be transferred to the DEAF fund, and you'll still have to go through additional procedures to get it back.

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.