TaxTMI 
TaxTMI 
TaxTMI 
An inoperative account, also known as a dormant account, is a bank account in which there have been no customer-initiated transactions for a continuous period of two years. Many account holders are unaware that their savings, current, or business accounts may become inoperative due to inactivity, leading to restrictions on withdrawals, transfers, and digital banking services. Understanding how to activate an inactive account status is essential to regain full access and safeguard your funds.
What Is an Inoperative Bank Account?
A bank account is classified as inoperative when there are no deposits, withdrawals, or fund transfers initiated by the customer for two consecutive years. Interest credits or bank charges do not count as transactions. Once an account becomes inoperative, banks restrict debit transactions to prevent misuse and fraud.
Why Accounts Become Inoperative
Common reasons include:
- Long-term non-use of the account
- Relocation or change of residence
- Use of multiple bank accounts
- Account holder residing abroad
- Incomplete or outdated KYC details
Regular account monitoring helps prevent accounts from becoming dormant.
Why You Should Activate an Inoperative Account Promptly
Failing to activate an inoperative account may lead to:
- Restricted access to funds
- Inability to use ATM, UPI, or internet banking
- Delays in receiving credits, refunds, or interest
- Risk of funds being forgotten or unclaimed
Timely action ensures uninterrupted banking access.
RBI Guidelines on Inoperative Accounts (Updated Overview)
As per Reserve Bank of India (RBI) guidelines, banks must:
- Notify customers before declaring an account inoperative
- Allow reactivation without imposing penalties
- Complete reactivation after due diligence and KYC verification
- Provide both branch and digital options for reactivation where feasible
These measures aim to protect customer interests and promote financial inclusion.
Step-by-Step Process to Activate an Inoperative Account
1. Submit Reactivation Request: Visit the bank branch or log in to internet banking (if enabled) and request activation of the inoperative account status.
2. Update KYC Documents:Banks typically require:
- PAN card
- Aadhaar or passport
- Recent address proof
- Passport-size photograph
3. Identity Verification: The bank verifies the account holder’s identity through in-person or video KYC.
4. Account Activation: Once verification is complete, the account is reactivated, and full banking services are restored.
Activate Inoperative Account Online
Many banks now offer online reactivation through:
- Internet banking portals
- Mobile banking apps
- Video KYC facilities
This updated approach saves time and reduces branch visits, especially for senior citizens and NRIs.
Activate Inoperative Account for NRIs
NRIs can activate inoperative accounts by:
- Submitting KYC documents attested by authorised officials
- Using video KYC services
- Coordinating with bank representatives remotely
Banks may require additional compliance for overseas customers.
Documents Required to Activate Inoperative Account
Commonly required documents include:
- Identity proof
- Address proof
- PAN card
- Account details or passbook
Ensuring consistency across records speeds up the process.
How Long Does Reactivation Take?
Activation of an inoperative account usually takes 2 to 7 working days after successful verification. Delays may occur if documentation is incomplete or requires further checks.
Tips to Avoid the Account Becoming Inoperative Again
- Perform at least one transaction every year
- Keep KYC details updated
- Maintain updated contact information
- Enable SMS and email alerts
Conclusion
Knowing how to activate inoperative account status empowers account holders to regain access to their funds smoothly and securely. With updated RBI guidelines and digital reactivation options, the process is now faster and more customer-friendly. Regular monitoring and minimal account activity can help prevent dormancy, ensuring your money remains accessible and protected at all times.