Do you have more than one bank account—perhaps a salary one, a savings account, or that old student account you haven’t touched for years? It’s easy for these extra accounts to slip your mind. When you finally need them, you may find the bank has made your account “dormant”—that is, temporarily restricted access because of inactivity.
Why Do Banks Freeze Unused Accounts?
A dormant account is one that hasn’t seen any transactions for a continuous period of about two years. This means there have been no deposits, withdrawals, cheque usage, or electronic transfers during this time. Banks don’t do this to trouble customers. In fact, it’s a safety measure. An idle account runs a greater risk of theft or fraud, so the bank restricts most ways to withdraw money. Your funds are still safe and continue to earn any interest promised; only access is limited until you revive your account.
Steps to Reactivate a Dormant Account
Restoring access to your dormant account is straightforward and doesn’t involve hidden fees. Just follow these steps:
- Visit the branch where you opened the account; activation is generally not possible online or from another branch.
- Write a short application to the bank, mentioning your name, account number, and the request to reactivate the account.
- Bring self-attested copies of your identification and address proof—such as Aadhaar card, PAN card, passport, or recent utility bill—along with the originals for verification.
- The bank may ask you to complete a small transaction, like depositing some money, to confirm the account is active.
- Typically, your account will be restored within a day or two after these steps are complete.
Common Questions About Dormant Accounts
- Reactivation is free—no fees or penalties are allowed for this process, according to Reserve Bank guidelines.
- Any deductions you see are likely for failing to keep the minimum required balance before the account went dormant; banks cannot charge penalties once the account is inactive.
- If an account hasn’t seen any activity for over a decade, banks transfer the funds to a national depositor protection fund. Your money remains safe, and you can still claim it by following the due process at your branch.
