This comes to pass exactly during your no bank transaction period that extends for more than 12 months. When there is no transaction done in the bank account, the account automatically changes into an inactive account. The bank then waits for another period of twelve months for the customer to begin another transaction on the same savings bank account that have already been classified as inactive, but still if the customer fails to make a transaction on the account, the bank account then becomes dormant.
One thing worth noting is that the word ‘transaction’ in the banking lingo pertains to any business dealing that has been started by the bank account holder or the bank customer these transactions might be a debit card transaction, a money deposit transaction or a cash withdrawal transaction or internet banking. However the transactions that are initiated by the banks for instance, if any extra charge or fee is levied on your savings bank account, they are not taken into consideration while categorising your account into an inactive or dormant account. But this doesn’t mean that in a fixed deposit account any amount of credit that is earned by the customer is not regarded, it is and also lets you keep your bank account active.
What is the main reason behind banks to categories saving bank accounts into dormant or inactive ones?
With the amount of fraud and fraudsters increasing everyday,the banks too, wants to do away with the risks of any untoward happening in your savings bank account. Once they categories the account as inactive or dormant, the banks alert their staff about a likely contigency that might materialise with your savings bank account and before any fresh transactions can happen in the same bank accounts, they make sure that a thorough diligence check is done.
There are limitations on inactive and dormant accounts – What are they?
There are various limitations put by the banks on inactive or dormant accounts and yet these limitations differ in every individual bank. There are some banks who put a lot of check on phone banking and internet banking as well, there are some banks that put a lot of constraints on cheque transactions as well. An example would be HDFC bank. It bars internet transactions, ATM or Debit card transactions and phone banking as well on dormant saving accounts. HSBC being a global bank, in India it doesn’t allow internet banking, phone banking, issuing and renewal of ATM or Debit card, cheque book requests, cheque transactions, request to change the address and telephone numbers so on and so forth.
Did you want to know the procedure to reactivate your dormant or inactive bank account?
It is a cakewalk! To activate your inactive savings bank account, you just have to make a cash deposit in your bank account. To reactivate a dormant account you have to submit a written request to the bank branch and its authorities. Please keep in mind that the bank cannot levy any charges on you to reactivate your savings account.