Activate Dormant Account: Everything You Need to Know
A bank account is classified as dormant or inoperative when there are no customer-initiated transactions for a continuous period, usually two years. Many account holders in India are unaware that their savings or current accounts have become dormant due to inactivity. If left unattended, such accounts may restrict withdrawals, deposits, ATM usage, and online banking services. Fortunately, banks provide a clear process to activate dormant account status and restore full functionality.
This comprehensive guide explains what a dormant account is, why accounts become inactive, the risks involved, and the step-by-step process to activate a dormant account in India.
What Is a Dormant Bank Account?
A dormant account, also known as an inoperative account, is a bank account in which no customer-induced transactions have occurred for a specified period. As per Reserve Bank of India (RBI) guidelines, an account is considered inoperative when there are no transactions for more than 24 months.
Transactions that prevent dormancy include:
- Cash deposits or withdrawals
- ATM withdrawals
- Online fund transfers
- Cheque transactions
Interest credits or bank charges do not count as customer-initiated transactions.
Why Do Bank Accounts Become Dormant?
There are several reasons why an account may become inactive:
- Long-term non-usage of the account
- Change in residence or employment
- Opening multiple bank accounts
- Migration to digital wallets or other banks
- Overseas travel or relocation
- Death of the account holder (accounts later classified separately)
Many people forget about old salary accounts or savings accounts after switching jobs, leading to dormancy.
Why You Should Activate Dormant Account Quickly
Leaving a bank account dormant can cause several issues:
- Restrictions on withdrawals and deposits
- ATM, debit card, and net banking access disabled
- Increased risk of fraud or unauthorized access
- Difficulty in claiming unclaimed balances later
- Funds may eventually be transferred to RBI’s Depositor Education and Awareness (DEA) Fund
To avoid these complications, it is important to activate dormant account status as soon as possible.
RBI Guidelines on Dormant Accounts
The RBI has issued clear instructions to banks regarding inoperative accounts:
- No charges should be levied solely for inactivity
- Banks must conduct enhanced due diligence before reactivation
- KYC compliance is mandatory
- Customers must be informed before accounts are classified as dormant
These guidelines are designed to protect customers while ensuring financial security.
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How to Activate Dormant Account in India
The process to activate a dormant account is simple and customer-friendly. While procedures may vary slightly across banks, the general steps remain the same.
Step 1: Visit the Bank Branch
Most banks require the account holder to visit the home branch or any nearby branch where the account is held. Some banks also allow partial online requests.
Step 2: Submit a Request to Activate Dormant Account
Ask for the Dormant Account Activation Form and fill in details such as:
- Account number
- Name of the account holder
- Reason for inactivity
- Contact details
This form formally requests the bank to activate dormant account status.
Step 3: Complete KYC Verification
KYC verification is mandatory for reactivation. You may need to submit:
- Aadhaar Card
- PAN Card
- Passport or Voter ID
- Address proof (utility bill, bank statement)
In some cases, biometric or in-person verification is required.
Step 4: Identity Verification by Bank
The bank verifies your identity through:
- Signature verification
- Photo matching
- OTP-based verification (for digital channels)
This step ensures account security and prevents misuse.
Step 5: Perform a Transaction
Once verification is complete, the bank may ask you to:
- Deposit a small amount, or
- Withdraw cash, or
- Transfer funds
This customer-initiated transaction officially helps activate dormant account status.
Can You Activate Dormant Account Online?
Some banks in India allow partial or full online reactivation through:
- Net banking login
- Mobile banking apps
- Customer care requests
However, for accounts that have been dormant for a long time, physical branch visits and in-person KYC are usually mandatory.
Documents Required to Activate Dormant Account
Keep the following documents ready:
- Valid photo ID proof
- Address proof
- Account passbook or statement
- Debit card (if available)
- Updated mobile number linked to the account
Proper documentation ensures faster reactivation.
Time Taken to Activate Dormant Account
The timeline varies depending on the bank and KYC status:
- Same day activation for accounts with updated KYC
- 2–5 working days if verification is required
- Longer if documents need clarification
Banks generally prioritize reactivation requests.
Charges for Dormant Account Activation
As per RBI guidelines:
- No penalty or reactivation fee should be charged
- Normal KYC or service charges may apply if applicable
Always confirm with your bank to avoid misunderstandings.
What Happens If You Don’t Activate a Dormant Account?
If an account remains dormant for several years:
- Access becomes increasingly restricted
- Funds may be transferred to the RBI DEA Fund after 10 years
- Claiming funds later becomes more documentation-intensive
Timely action prevents unnecessary complications.
Special Cases: Joint Accounts and Deceased Account Holders
- Joint Accounts: Either holder may initiate activation, subject to bank rules.
- Deceased Account Holder: Legal heirs must follow a separate claim process with documents such as death certificate and legal heir certificate.
Dormant account activation rules differ in these scenarios.
Tips to Prevent Your Account from Becoming Dormant
To avoid the need to activate dormant account again:
- Make at least one transaction every year
- Update KYC details regularly
- Keep your contact details updated
- Monitor account activity via SMS or email alerts
Small actions can keep your account active.
Conclusion
A dormant bank account can limit access to your own money and create unnecessary hurdles in the future. Fortunately, the process to activate dormant accounts in India is straightforward, secure, and guided by RBI regulations. By completing KYC verification and performing a simple transaction, you can restore full functionality to your account.
Whether it’s an old savings account, salary account, or joint account, timely reactivation ensures your funds remain accessible and protected. If you suspect your account is inactive, take prompt action to activate the dormant account and regain complete banking access.
