Now Reading: Check if your unused bank account has turned inactive
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Check if your unused bank account has turned inactive
The Reserve Bank of India (RBI) classifies savings and current accounts as inoperative if no customer-initiated transaction occurs for more than two years. Funds in such accounts do not become the bank's…
The Story in Brief
The Reserve Bank of India (RBI) classifies savings and current accounts as inoperative if no customer-initiated transaction occurs for more than two years. Funds in such accounts do not become the bank's property, but the account holder cannot withdraw money until the account is reactivated through fresh KYC, Aadhaar, PAN, and address proof, usually at a branch, since online channels remain restricted. Livemint quotes Atish Jain, CEO of Choice Wealth, warning that unmonitored dormant accounts are easy targets for money mule networks and fraud, and suggests RBI and banks could ease the process by allowing video-KYC or app-based reactivation instead of mandatory branch visits.
The Indian Opinion
Fair enough: RBI wants to flag dormant accounts before they become money-mule magnets. But the mandatory in-branch reactivation, even for a zero-balance savings account you opened in college, feels like a relic. What is the harm in letting video KYC or an app-based form unlock the account, as funds aren't leaving the system anyway? The real test will be whether the February 2024 circular on video KYC actually prompts banks to offer that option, or if crores of accounts stay parked simply because a branch visit is too much friction.
Source: livemint.com
This story was synthesised by AI from the source linked above.
