In today’s digital world, most people have multiple bank accounts—some for salary, some for savings, and others for investments. But many of these accounts often remain unused for months or even years. If no transaction is made in your savings account for 2 continuous years, banks mark it as a dormant account. Once this happens, you can’t use ATM, internet banking, or even deposit or withdraw cash until the account is reactivated.
Inactive vs Dormant Account – Know the Key Difference
Banks don’t directly make your account dormant. There’s a clear process:
- Inactive Account: No transaction for 12 months.
- Dormant Account: No transaction for 24 months (2 years).
In an inactive account, some basic services may still work. But once it becomes dormant, you lose access to almost all banking services like UPI, ATM, cheque books, and mobile banking. The only way to use the account again is to get it reactivated.
How to Reactivate a Dormant Account?
If you want to use your dormant account again, follow these easy steps:
- Visit Your Bank Branch: You must go to the branch in person.
- Submit a Written Request: Write a simple application asking to reactivate your account.
- Provide KYC Documents: Carry identity and address proof like:
- Aadhaar card
- PAN card
- Voter ID
- Passport
- Driving license
- Electricity/water bill (for address proof)
- Sign & Submit: Attach signed photocopies of your documents and submit them.
Is There Any Fee to Activate the Account?
No. Banks do not charge any fee to reactivate your dormant account. Once you submit your application and KYC documents, the reactivation process starts. In most cases, your account becomes active within 1-2 working days.
What Happens to the Money in Dormant Accounts?
The good news is—your money remains safe even if your account becomes dormant. The bank cannot take your funds or charge extra fees. After reactivation, you can access and use your full balance like before.
Simple Tip to Avoid Dormant Status
To avoid your account from becoming dormant, just do one transaction every few months. It could be a small deposit, UPI transfer, or even a balance inquiry. This will keep your account active and fully functional.
