Dormant Bank Account: If you haven’t used your bank account for a long time, you need to be careful—it could become inactive or dormant.
Once an account becomes dormant, your banking services are stopped, and accessing your money becomes difficult.
But don’t worry—a dormant account can be reactivated easily if you understand the rules and process.
Let’s learn why an account becomes dormant, how to reactivate it, and whether any charges apply.
Why Does a Bank Account Become Inactive or Dormant?
If you don’t make any transactions in your bank account for 12 months, the bank marks it as inactive. If there is no activity for 24 months or more, the account becomes dormant.
Important: Interest added by the bank or charges deducted are not considered customer transactions.
Some common reasons accounts become inactive or dormant include:
Moving to a new place and forgetting about the old account
Opening an account with a new bank and not using the old one
Account belongs to a deceased person and is no longer used
Fixed deposit accounts where no transactions are done for years
Difference Between Inactive and Dormant Accounts
Inactive Account: Still allows limited services like checking balance or viewing account statements.
Dormant Account: Most services are stopped, including ATM, net banking, debit card, UPI, etc.
This is done for security purposes to prevent misuse. Before marking an account dormant, banks often send alerts via SMS, email, or post.
To reactivate a dormant account, KYC and ID verification are usually required. For inactive accounts, this process is often not necessary.
How to Reactivate a Dormant Account
To reactivate a dormant account, visit your nearest bank branch and carry these documents:
Valid ID proof (like Aadhaar, PAN)
Passbook or account number
New address proof, if you’ve changed your address
The bank will ask you to submit a written request and may ask you to fill a fresh KYC form. Some banks allow video KYC or phone verification, but most require an in-person visit.
Once the process is completed, the account becomes active again and you can use all services like UPI, NEFT, and cash withdrawal. If you no longer need the account, you can choose to close it after withdrawing the balance.
Is There a Penalty for Reactivating the Account?
No. As per RBI rules, banks cannot charge any fee or penalty to reactivate a dormant or inactive account.
Also, your money in the account continues to earn interest, even while the account is inactive.
This step is taken to protect the customer from fraud or misuse.
What Happens If the Account Is Inactive for 10 Years?
If an account is left unused for 10 years or more, the money in it is transferred to RBI’s DEAF (Depositor Education and Awareness Fund).
But don’t worry—you can claim your money anytime by contacting the bank and submitting proper documents.
How to Prevent Your Account from Becoming Dormant
Make a small transaction every few months—even a ₹10 UPI transfer works.
Link the account to an auto-debit, UPI app, or mobile wallet to keep it active.
If you don’t need the account, it’s better to close it properly.
Even if your account becomes inactive by mistake, contact your bank quickly to reactivate it and continue using it smoothly.
