Definition of Inactive and Dormant Status

• An inactive account shows no customer-initiated transactions for 12 months.
• A dormant account has no such activity for 24 months.
• The status is based on the absence of withdrawals, deposits, or digital activity.
• Interest credits and bank charges do not count as active use.
• The classification helps banks manage risk and security.

Impact on Account Operations

• Inactive or dormant accounts may have restricted access.
• Online banking and ATM facilities may be temporarily disabled.
• Transactions may require additional authentication or verification.
• Account holders may not receive some alerts or statements.
• Loan or credit services linked to the account may be affected.

Reactivation Process

• Account holders must submit a written or online request to reactivate.
• Valid identity and address proof documents are required.
• KYC updates may be mandatory before restoring full access.
• Banks verify the account and customer details during reactivation.
• Once verified, services and transaction rights are resumed.

Reasons for Dormancy

• Long-term overseas travel or relocation without account use.
• Opening of new accounts with another bank.
• Use of alternative payment methods over traditional banking.
• Forgotten or unmonitored accounts with low balances.
• Inherited or jointly held accounts left unattended.

Preventive Measures and Monitoring

• Regular small transactions keep the account active.
• Periodic review of account balances and statements is recommended.
• Linking accounts with utilities or auto-payments helps maintain activity.
• Banks issue reminders before changing account status.
• Customers should update contact details for timely alerts.