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Do banks automatically close inactive accounts?
So, we are here to guide you as to how you can close your inactive bank account. According to the RBI’s norm, if a customer discontinues using his or her account for 12 consecutive months then banks will automatically make them inactive, and more than extra inactive 12 months will make it a dormant account.
Will bank close dormant account?
Dormant bank account can be reactivated for you to start operating it or closing it.
How long before an inactive bank account is deleted?
Dormant vs. When an account has no transactions for 12 months, it is considered inactive. If there is no activity for 24 months, it is deemed dormant. Remember, system-generated activities like interest credits don’t count.
Can banks deactivate bank accounts?
Your bank or credit union can freeze or close your account for any reason — and without notice — but some reasons are much more common than others, and you can take action to prevent or reverse the process.
How long can an account stay dormant?
If you have a current or a savings bank account and have not done any transactions through it for more than 12 months, then it will be classified as an inactive account. And if you don’t do any transactions from a bank account for 24 months, then it will be classified as dormant.
How do I reopen my dormant bank account?
Customers need to visit the branch of the bank and make an application to activate the dormant account. A bank can activate a dormant account the next business day or can take more time depending on internal processes and risk category of the depositor.
How long does it take for a bank account to go dormant?
Banks follow standard durations and all of them will mark your account as inactive after 12 months and as dormant after 24 months. Some banks may provide you an extension of 12 months provided you reply back with valid reasons.
How much does it cost to reactivate a dormant account?
Points to note 1 There are no charges for reactivating your dormant bank account as RBI has prohibited same. 2 You will be informed three months before your account is classified as dormant. 3 Banks follow standard durations and all of them will mark your account as inactive after 12 months and as dormant after 24 months.
Why did my SBI account become dormant after 12 months?
Now if you already have a bank account in SBI and you are not using your SBI Bank Account from quite a long time, it might have got dormant. Usually the Bank Accounts which are not is use from a long time or the accounts in which no transactions are done are made inactive after a period of 12 months and made dormant after 24 months time.
How long does a bank account stay inactive after closing?
If you do a transaction with in next 3 months, it will stay active for another 12 months post which it will be marked as Inactive. Banks follow standard durations and all of them will mark your account as inactive after 12 months and as dormant after 24 months.