How To Activate a Dormant Account
What is Dormant Account?
A savings as well as a current account is classified as ‘inoperative’ or ‘dormant’ if. there are no transactions in the account for over a period of two years. Interest. credited by the bank on the balance in the account and any charges debited by the bank is not considered as transactions for this purpose.
How To Activate a Dormant Account
You can reactivate your account by making a transaction or contacting your bank. Banks have regulations in place to activate dormant accounts. When a bank account remains inactive for over two years, it is typically categorized as inoperative or dormant.
Frequently Asked Questions
Can a dormant bank account be reactivated?
The account owner can request the bank to reactivate a dormant account. First, the bank would ask them to present several documents, including account number, identification, and other proofs. Then, the person usually has to do some transactions to ensure that the account is reactivated.
How do I reactivate my dormant account online?
You must submit a written application to the bank. For joint accounts, signatures of all accountholders will be needed, irrespective of a single or joint operating mode. You will have to submit your KYC (Know Your Customer) documents. These will include address proof, PAN Card, and identity documents.
How long does it take for a dormant account to be active?
If a bank account hasn’t been used for two years, it becomes dormant. The owner of a dormant bank account cannot use services associated with the bank. Usually, the dormant bank account gets activated in a day.
Can money be deposited in dormant account?
Ans: No, you cannot transfer funds from your bank to your dormant account. If you have a dormant bank account and need to transfer funds to it, you should first contact your bank and know the procedure for transfer.
Can I withdraw money from dormant account?
Can I withdraw cash from an ATM if my account is dormant? No, dormant account holders will not be able to make ATM transactions.
How long can a bank account stay dormant?
three to five years
Inactive Accounts
Generally, an account is considered abandoned or unclaimed when there is no customer-initiated activity or contact for a period of three to five years. The specific period is based on the escheatment laws of each state.
Can dormant account be recovered?
The Escheatment Process for Dormant Accounts
Escheatment is the legal process for transferring unclaimed property to the state. Account owners can reclaim assets that were deemed inactive and transferred to the state.
What documents do I need to reactivate a dormant bank account?
Reactivating your bank account
- You must submit a written application to the bank. For joint accounts, signatures of all accountholders will be needed, irrespective of a single or joint operating mode.
- You will have to submit your KYC (Know Your Customer) documents. …
- You have to do at least one financial transaction.
How do I fix a dormant bank account?
The account owner can request the bank to reactivate a dormant account. First, the bank would ask them to present several documents, including account number, identification, and other proofs. Then, the person usually has to do some transactions to ensure that the account is reactivated.
hat happens to money if account is dormant?
A dormant account with a very small balance may simply evaporate, reaching a zero balance due to monthly bank fees that exceed any interest paid. If not, the balance is turned over to the state, which will return it to the rightful owner upon request.