What happens when you don’t use your bank account for a long time?

Friends, today almost all the people of India have accounts in various banks of the country. Before 2016, many people of India did not have a bank account in their name and therefore they were suffering from many problems

There is a very shortage of financial literacy in India. That’s why many people still don’t own their bank accounts. They are actually not aware of the benefits of various kinds of a bank account.

However, Narendra Modi launched the scheme Pradhanmantri Jandhan Yojana in order to give facilities of banking to the very ordinary people of India.

According to the rules of this scheme, one can easily open their own bank account in any bank with zero balance. People also supported this scheme and more than 60 crore Jandhan accounts already exist today in India.

However, still many people in India not using the facilities of the banking system due to the problem of awareness. They actually don’t know that their bank account might get suspended if they will not use it for a long time.

In this article, we are going to cover everything about why your bank account goes in inactive mode and how can you deal with this problem?

What happens when you don’t use your bank account for a long time?

When Bank deactivate any customer’s account?

When any type of activity is not done by any customer in his account for 12 consecutive months, then the bank declares that account inactive. If this thing happens continuously for 24 months, then the bank declares that account as a dormant account.

There is a misconception in the minds of many people that the bank deposits interest in your account every 6 months, that is why the bank account remains active. This thing is totally wrong. Here I am going to explain why?

Banks have many reasons to deactivate your account. The first one of the main reasons is considered to be the inactivity of your bank account. The bank feels that the customer is not interested in their service, so they deactivate their accounts after 12 months and 24 months of inactivity.

Adding interest on every particular period of pre-defined time is a function of a banking system. It has nothing to do with the transaction done by the customers. That’s why it is important to keep your account active to avail the benefits of the banking system.

How to save your bank account from getting an Inactivate status?

As we stated earlier that you must have to remain to activate your bank account in order to save it from the inactivation. To keep the bank account active, you will have to do any type of transaction from the account at a regular interval.

When you do any type of transaction on a regular period of time, then your bank’s system comes to know that you are an active customer and using the benefits provided by them. This thing will definitely help you from getting inactivate or dormant account status from your respective bank.

How to recover your Inactive account?

It is very important for you to know that if you do not do any kind of transaction or withdrawal in your account for 12 consecutive months, then your bank account becomes inactive.

There is a misconception in the minds of many people that if your bank account has become inactive, then only the bank can solve this problem. But this is not entirely true.

We all know that a normal bank employee has many works to do in their entire routine schedule. That is why earlier whenever someone’s bank account became in-activated, they had to face a lot of problems in getting it activated again.

But now the Reserve Bank of India has announced a special facility for in-active accounts. Under these guidelines of RBI, now the customer can activate his inactive account himself. For this, he has to use the method given below.

Customers can use the following facilities to convert an inactive account to an active account.

  1. Customers can withdraw some amount from ATMs in order to acquire active transaction status in a bank account.
  2. They can also deposit cash and cheque in their accounts.
  3. They can do transactions with the help of a cheque. (E.g. can issues the cheque from his cheque book to another customer of the bank).
  4. Customers also can use the facility like Internet banking or mobile banking in order to activate their accounts.

As we all know that cash and cheque deposits, ATM withdrawals are the physical mode of transaction. Nowadays Indian banking system is also becoming digital and trying their best to provide maximum facilities to their customers with a single touch click. UPI and the online transaction system are the best example of this digital reform of the Indian banking system.

Customers can also use this kind of online transaction system in order to reactive their accounts. The best way you can keep activate your account is by using the digital platforms for a maximum time.

As you all know that from all the big companies and small shops to almost all the street vendors are nowadays using online transaction systems like Google Pay and Phone Pay. You can easily pay them with the help of this digital platform which is absolutely free to use.

How to reactivate Dormant Account?

As we stated earlier that if you don’t do any kinds of transaction in your bank account for continuous 24 months, then bank declares those account as dormant account forcefully. This type of inactive account is not so easy to reactivate again with the easiness mentioned regarding normal inactivate account.

If your account is continuously inactive for more than 24 months, then you must have to take a visit to your bank and seek help from its employees in order to activate your account. If your account is in dormant status then you must have to submit your self-verified identity proof and address proof to your bank in order to reactivate your account.

You just have to go to your respective branch and tell them the actual story of your inactive account. The bank employee will give you a simple reactivation form. You just have to fill it properly and mark your signature on it. The bank will receive your application and will reactivate your dormant account as soon as possible.

Generally, the bank takes time for 24 hours to reactivate your account during their normal working days. Your account will be reactive again within 24 hours. Also, some private banks like ICICI Bank and HDFC Bank also provide quick reactivation facilities to their respective customers.

The best thing about the reactivation process is you don’t have to pay a single penny to them in order to reactivate your account which is closed due to long time inactivity.

Final words on What happens when you don’t use your account for a long time?

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