How to Reactivate Your Dormant or Inactive Bank Account

• When you do not operate your bank account for a certain time, it becomes inactive or dormant.
• Once your account becomes dormant, your bank may restrict certain account activities.
• You can keep your account active by depositing cash/cheque, making deposits/withdrawals at an ATM, or executing an online transaction.

Managing multiple bank accounts can often be a demanding task, which can sometimes potentially lead to some accounts becoming dormant or inactive. In such a case, you should know how to reactivate your dormant account.This blog delves into the details of a dormant account and highlights how it differs from an inactive account. Additionally, the blog shares how you can make your account operational again. Read on!

When you do not operate your bank account for a certain time, it becomes inactive or dormant.The period of non-operation is the key difference between these account types. It is generally shorter in the case of an inactive account than a dormant account.You must check with your banker about the time frame within which your account may become inactive or dormant.The differences between these accounts are tabulated below:

When you don’t conduct any transaction through your account for a certain period, it becomes dormant.To keep your account active, you must deposit cash/cheque, make deposits/withdrawals at an ATM, or execute an online transaction regularly or periodically. Note : Charges debited or interest credited to your account do not keep your account active.Banks handle a dormant account according to their policy, which may include charging fees or restricting certain activities.

While your account still exists, the bank imposes restrictions on certain account activities, which may include:

• You may not be able to transact at your bank’s branch.
• Issuance of cheques may be restricted.
• You might not be able to renew your debit/ATM card.
• Online banking may be limited.
• Withdrawals from an ATM may be prohibited.

Apart from restricted account activities mentioned above, a dormant account can have other implications, such as:

• Some dormant accounts may stop accruing interest.
• In case of prolonged dormancy, some accounts may be subject to escheatment i.e. funds may be transferred to an unclaimed property division.
• Such accounts are more vulnerable to fraud as they are not regularly monitored.

You can reactivate your dormant account and make it operational again. The reactivation process typically comprises the following steps:

• Step 1: Reach out to your bank to initiate the activation process.
• Step 2: Submit the relevant documents, including identification documents.
• Step 3: Fill out the relevant form and submit the supporting documents.
• Step 4: Make a transaction from your account. Your bank will guide you with the minimum transaction amount.
• Step 5: Once you complete the formalities, confirm with your banker about the reactivation.

Note: You can usually place a reactivation request through your internet/mobile banking or reach out to your banker through a personal visit, customer care, or email.

Regular transactions help prevent dormancy. Here are a few tips to keep your account active:

• You may explore creating a standing instruction to transfer funds from your bank account to another account of yours.
• Consider linking your bank account to a mobile wallet or a UPI app for making payments.
• If you expect potential inactivity in your account, inform your bank and confirm if your account can be kept active.

Non-operations may potentially make your account inactive and prolonged non-operations could make it dormant. A bank typically restricts certain activities once your account becomes a dormant account. To avoid such restrictions and other inconveniences, ensure regular transactions through your bank account.You may link your bank account to a UPI-enabled app like ABCD from Aditya Birla Capital . This helps to not only keep your account active but also make quick and easy payments.From executing transactions without the internet to making international payments, explore a host of benefits of using a UPI-enabled app. Also Read: What Is a Savings Account and How Does It Work?