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Dormant bank account: Have you not done any transaction in your bank account for two years? If yes, then be alert. Your account can now be Dormant. This can affect your money. Due to this, ATM will not withdraw money, online payments can be stopped and necessary credits such as salary or tax refund can be missed. But there is no need to get upset. In this article, we will explain in easy language what is the dormant account, what are its disadvantages and how it can be activated immediately. With this, you will know some simple tips, so that your account will always be active and safe.

What is a dormant account?

If you do not do any transaction in the account for 12 months, such as deposits, withdrawals, fund transfer or net banking login is considered to be bank account inactive. If it is used for 24 months, then according to the rules of RBI, your account becomes a dormant. The same rules are applicable in other countries of the world. Meaning, not using the account for two years can create risk about your money.

What happens in a doMent account?

Many services are stopped in the DaMent account. It becomes difficult to withdraw money from ATM. The use of online transactions or debit cards stops. Interest goes on a savings account, but full access is not available. Dividend or refund may be credited, but account freely cannot be used. This is mainly done to protect against fraud and misuse.

What are the disadvantages of the dormant account?

The DoMent account can not only have a mess, but can also do financial harm. This will cancel auto-payments and direct debits. Essential credits like salary, tax credit or investment returns can be missed. Balance may be transferred to Deaf (Depositor Education and Awareness Fund) if not opening an account for a long time. Meaning, it is very important to keep the account active in time.

How to activate a dormant account?

• Go to the bank branch and take the ID, address proof.
• Submit the request for reactive in writing.
• Some banks also provide reactive facilities from net banking or mobile banking, if KYC updates.
• After the correct authentication, your account will be active.

How to avoid being a bank account dormant?

• Do at least one transaction a year.
• Passbook updates or balance check also works.
• Your account is active and safe with small and regular transactions.

Frequently asked questions (FAQ)

Does the bank charge from me when the account is inactive?

Most banks can take service charge or maintenance charge for inactive accounts. It depends on the rules of the bank.

Will investment schemes like FD or RD be affected in Damen account?

No, your FD, RD or other investments are also in operation in the doMent account, but the bank may have to contact the services associated with them.

Can I also reactive account through online banking?

Yes, many banks offer reactions through net banking or mobile banking, provided your KYC is updated.

If the account remains a dormant for a long time, will the money be safe?

Yes, the money remains safe, but if there is no action for a long time, the bank can transfer uncured balance to a central institution like Deaf.

Does the name of the Damen account affect the Credit History?

Usually, the dormant account does not affect the direct credit score, but the delay in auto-payment or billing related to it may have indirect effect.