A savings/ current account will be treated as inoperative if there are no customer induced transactions in the account for a period of over two years, reads the RBI notification.
Published
3 Jan 2024, 10:49 AM IST
The Reserve Bank of India (RBI) has released acircular that issued fresh instructions relating to inoperative accounts. The circular states that any credit balance in any deposit account maintained with banks, not operated for ten years or more, is required to be transferred by banks to the DEA (Depositor Education and Awareness) Fund maintained by the RBI.
TheRBI circular also states that an account will be inoperative if there are no transactions for a period of two years. "As a measure to assist the account holders and with a view to consolidating and rationalising the extant instructions on inoperative accounts, a review was carried out in consultation with all stakeholders. Based on the review, it has been decided to issue comprehensive guidelines on the measures to be put in place by the banks," RBI said in the statement.
These guidelines will come into effect from April 1, 2024.
Here are some of the key points covered by the circular:
What is an inoperative account?
A savings/ current account will be treated as inoperative if there are no customer induced transactions in the account for a period of over two years, reads the RBI notification.
What happens to an account when it remains unoperated for ten years?
The credit balance in any deposit account maintained with banks which have not been operated upon for ten years is to be transferred by banks to the Depositor Education and Awareness Fund Scheme maintained by the RBI.
How to activate an inoperative account?
The banks will activate the inoperative accounts and unclaimed deposits, including those which are under freeze by orders of various agencies such as courts, tribunals, law enforcement agencies, only after adhering to the KYC guidelines provided in the Master Direction dated Feb 25, 2016.
The banks are also meant to provide on their website as well as their branches the information on the process for activation of the inoperative account/ unclaimed deposits.
Are there any charges to be levied?
The RBI has made it clear that the banks are not permitted to levy penal charges for non-maintenance of minimum balances in any account that is classified as an inoperative account. No charges will be levied for activation of inoperative accounts.
Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:
3 Jan 2024, 10:49 AM IST
Business NewsMoneyPersonal FinanceHave an inoperative bank account? RBI issues set of clarifications. Details here
