How to activate a dormant bank account? - Property lawyers in India
Skip to content
Property lawyers in India

Property lawyers in India

Free Legal Advice on Property

  • HOME
  • SERVICES
    • Title search
    • Partition of property
    • Transfer of property
    • Banking/Finance Matters
    • Succession certificate
    • Tax matters
    • Litigation Matters
    • NCLT Matters
    • Developer Claims
    • Adverse possession
    • Landlord tenant disputes
    • Real Estate Services
  • LEGAL PRECEDENCE
  • TESTIMONIALS
  • FOUNDER’S DESK
    • Latest Blogs
    • Latest Videos
  • ABOUT US
    • Know Us
    • Why Us
  • Contact
    • United Kingdom
      • Birmingham
      • Leicester
      • London
      • Gravesend
    • Affiliate Offices
      • India
        • Chandigarh
        • Gujarat
        • Gurugram
    • Canada
      • Toronto

Home » Blog » Bank Matters » How to activate a dormant bank account?

How to activate a dormant bank account?

How to activate a dormant bank account

A situation may arise when the bank does not permit any transaction in your saving account. It is the account which was opened but never operated for a long time. It’s a dormant account.

Only the saving or current account becomes dormant.

Even if the account is declared as dormant account, Bank keeps on crediting interest on the balance in the account. RBI has directed the banks not to levy any penalty for non-maintenance of minimum balance in the dormant account. However, the bank may impose restrictions like not allowing payment of cheque /withdrawal etc. from a dormant account.

Recommended reading: Banking and Finance matters

Banks consider the following transactions to determine whether the account is dormant or not:

  • Self withdrawal or withdrawal through ATM
  • Depositing to the account
  • Cheque payment
  • Transfer of funds to and from the account
  • Interest earned on fixed deposits and credited to the account
  • Payment of EMI

These are all customer mandated/customer induced transactions.

Bank induced transactions like standard interest credit in the saving account does not fall in this category.

An account becomes an inactive account if it is not operated for one year. Later it is classified as dormant account if no transaction takes place for another year.

Recommended reading: Repatriation of funds from NRE/NRO Account

Dissemination of information by the banks:

Banks do inform the customer before classifying the account as a dormant account. It is done in two stages:

  • If for one year there is no transaction in the account, the account is declared inactive. Bank asks the customer to make a debit or credit entry in the account.
  • If no transaction is made in the account for another year, a communication is sent three months before classifying it as a dormant account.

How to activate a dormant account

For an inactive account, a simple debit/credit transaction will activate the account. The facility to reactivate such account might be available through Internet Banking also.

For a dormant account, an application is made to the bank for reactivation. There are no charges for reactivating the account although banks levy charges on the dormant account.

A written request is made by applying to the branch. The application cites the reasons for not operating the account for such a long time. In case of a joint account, both the account holders sign the application.

Recommended reading: Property Disputes among Siblings

For some banks, the account holder doesn’t need to visit the branch for activating a dormant account. But some banks insist upon a physical visit by the customer.

The documents required for KYC compliances are submitted afresh. A customer needs to provide ID proof, Address proof, PAN card and old cheque book and Debit card. The signatures are also verified at this stage.

The customer deposits some amount after reactivation or along with the documents for reactivation.

It is better to make some deposits per year or link the account directly for credit card payment or EMIs etc. so that the account remains alive and active.

NRI Legal Services is now on Telegram. Join NRI Legal Services channel in your Telegram and stay updated.

CategoriesBank Matters, Blog TagsActivate dormant account, Dormant Account, Dormant bank account, Finance Matters

Post navigation

Previous PostPrevious Repatriation of funds from NRE/NRO Account
Next PostNext Legal remedies for encroachment of property by neighbor

Search

Latest Video

Drop us a query and we will get in touch:


    InternetTVRadioBill BoardLeafletFriendNewspaper

    Latest Blogs

    • Prevent Property disputes in IndiaBest ways to prevent property disputes in India
      Property disputes form the majority of cases that clog our judiciary. Around […]
    • Corporate Law or Company Law and NCLTCorporate law and NCLT
      Corporate Law or Company Law is a branch of law that deals with companies or […]
    • Landlord rights What should NRIs consider before giving property on rent in IndiaLandlord rights: What should NRIs consider before giving property on rent in India?
      Property disputes are one of the most common disputes in India. Most common and […]
    • Steps of the Eviction Process How Does Eviction Work in Indian CourtsSteps of the Eviction Process: How Does Eviction Work in Indian Courts?
        The eviction process means evicting a tenant out of the rented property […]
    • title deed and other property ownership documentsImportance of title deed and other property ownership documents
      The title means ownership. In terms of property, it is a legal right to own. […]
    NRI LEGAL SERVICES FOOTER

    Registered Office

    126 High Street, Smethwick Birmingham B66 3AP United Kingdom

    0121-5650566

    Affiliate Office

    Plot No. 182 / 83, Industrial Area Phase I, Chandigarh, India 160002

    0172-4637120

    Social Media

    Latest Blogs

    • Prevent Property disputes in IndiaBest ways to prevent property disputes in India
    • Corporate Law or Company Law and NCLTCorporate law and NCLT

    Services

    • Title Search
    • Partition of Property
    • Transfer of Property
    • Banking/Finance Matters
    • Succession Certificate
    • Tax Matters
    • Litigation
    • NCLT Matters
    • Developer Claims
    • Adverse Possession
    • Landlord Tenant Disputes
    • Real Estate Services
  • Global Footprint

    • United Kingdom
    • Canada

    • Blogs
    • Legal Precedence
    • Videos
    • Privacy Policy
    • Contact us
    • Disclaimer
  • © 2020 NRI Legal Services. All Rights Reserved.

    • Facebook
    • Twitter
    • Instagram
    • Youtube

    NRI Legal Services Logo

    • HOME
    • SERVICES
      • Title search
      • Partition of property
      • Transfer of property
      • Banking/Finance Matters
      • Succession certificate
      • Tax matters
      • Litigation Matters
      • NCLT Matters
      • Developer Claims
      • Adverse possession
      • Landlord tenant disputes
      • Real Estate Services
    • LEGAL PRECEDENCE
    • TESTIMONIALS
    • FOUNDER’S DESK
      • Latest Blogs
      • Latest Videos
    • ABOUT US
      • Know Us
      • Why Us
    • Contact
      • United Kingdom
        • Birmingham
        • Leicester
        • London
        • Gravesend
      • Affiliate Offices
        • India
      • Canada
        • Toronto
    • Global Footprint

      • United Kingdom
      • Canada

      • Blogs
      • Legal Precedence
      • Videos
      • Privacy Policy
      • Contact us
      • Disclaimer