Transaction here means a customer-induced transaction — a transaction or activity initiated by you. It can also include certain non-financial activities (Details below)
What should I do?
To make the account active again:
Contact your bank and ask for the Application / Form for Activation of Inoperative Account. Banks generally have a prescribed form for this purpose. Fill it in and submit it at any branch of your bank, along with the supporting KYC documents mentioned in the application.
- Complete KYC/Re-KYC, if required.
- Update your address, mobile number or other details if they have changed.
- Keep an acknowledgement/reference number for your request.
Once the required KYC/verification has been completed, the account should be activated within three working days, as per the turnaround time (TAT) prescribed by RBI.
Within 3 working days
NIL
Quick Help
Want to understand the rules?
The information below explains when an account becomes inoperative, what transactions count as customer activity, and some important RBI rules.
When exactly does an account become inoperative?
A savings or current account is treated as inoperative if there have been no customer-induced transactions for more than two years.
Banks are also required to review accounts where there have been no customer-induced transactions for more than one year and take steps to contact the customer.
More than 1 year without customer-induced activity → Bank should review the account and attempt to contact you.
More than 2 years without customer-induced activity → The savings/current account may be classified as inoperative.
What is a customer-induced transaction?
A customer-induced transaction can be a financial transaction or certain qualifying non-financial activities initiated by the customer.
Financial transactions may include:
- Cash deposit or withdrawal
- Cheque transaction
- ATM withdrawal
- NEFT / RTGS / IMPS / UPI transaction
- Transfer to or from the account
- Standing instruction or direct debit authorised by you
- Other qualifying transactions initiated by you or by a third party
If you have given a mandate for interest from a Fixed Deposit or dividend on shares to be credited to your savings account, such credits can also qualify as customer-induced transactions because they arise from a mandate given by you.
Can a non-financial activity also keep my account active?
Yes.
Certain authenticated non-financial activities can also qualify as customer-induced transactions.
These may include eligible authenticated enquiries or service requests through:
- Internet banking
- Mobile banking
- ATM
- Other permitted digital channels
A successful login to internet banking or the bank’s mobile-banking application can also qualify under the RBI framework.
KYC updation through permitted channels can also constitute customer-induced activity.
What normally does not count as customer activity?
Transactions initiated automatically by the bank are different from transactions initiated by the customer.
Examples include:
- Savings-account interest credited by the bank
- Bank charges
- Fees
- Penalties
- Taxes or charges debited by the bank itself
Such bank-induced entries do not by themselves establish that the customer has operated the account.
Do I have to visit my home branch?
KYC updation for activation of an inoperative account can be undertaken through all branches of the bank, including non-home branches, under the applicable RBI framework.
Some internal processing may still be undertaken by the branch where your account is maintained.
Can KYC be updated through Video KYC?
Where the facility is offered and applicable, KYC updation may also be possible through Video-Customer Identification Process (V-CIP).
Ask your bank whether V-CIP is available in your case.
An authorised Business Correspondent (BC) may also assist with permitted KYC updation under the applicable framework.
Will I continue to receive savings-account interest?
Interest on a savings bank account continues to be credited even when the account is classified as inoperative.
What about accounts receiving Government benefits or scholarships?
Special consideration applies to accounts used for receipt of:
- Scholarships
- Direct Benefit Transfer (DBT)
- Electronic Benefit Transfer (EBT)
- Other applicable Government-scheme benefits
Banks have been advised to appropriately segregate such accounts so that legitimate Government benefit credits are not unnecessarily disrupted merely because of inactivity.
Inoperative Account vs Unclaimed Deposit
These are not the same thing.
Inoperative Account
A savings/current account generally becomes inoperative after more than two years without a customer-induced transaction.
Unclaimed Deposit / DEA Fund
A separate regulatory framework applies where eligible amounts in deposit accounts remain unclaimed/not operated upon for 10 years or more.
Such eligible amounts are transferred by the bank to RBI’s Depositor Education and Awareness (DEA) Fund in accordance with the applicable rules.
The depositor/rightful claimant can still make a claim through the concerned bank under the prescribed process.
Forgotten Bank Account / Unclaimed Deposit — How to Find and Claim Your Money
My account is frozen. Is that the same as inoperative?
Not necessarily.
An account may have restrictions for several different reasons, including:
- Inoperative status
- Pending KYC/Re-KYC
- Cybercrime/police instruction
- Court order
- Tax/statutory attachment
- Fraud/risk-control restriction
- Other regulatory or operational reasons
If you cannot withdraw or transfer money, do not automatically assume that the account is inoperative.
My Bank Account Has Been Frozen / Debit Blocked — What Should I Do?
Bank not activating your account?
If you have submitted the activation request and completed the required KYC formalities, check:
- Whether your activation request has been recorded
- Whether any KYC requirement is still pending
- Whether any additional restriction exists on the account
- Whether the prescribed three-working-day TAT has passed
Keep the acknowledgement/reference number of your request.
If the matter remains unresolved, lodge a formal complaint with the bank.
Find your bank in the BankBodh Complaint Directory →
Further escalation through the RBI complaint mechanism may be available if the bank does not resolve the complaint satisfactorily, subject to the applicable RBI Ombudsman framework.
At a Glance
| What you want to know | Position |
|---|---|
| When can an account become inoperative? | No customer-induced transaction for more than 2 years |
| Does only a debit/credit count? | No. Certain non-financial activities can also count |
| Does savings interest continue? | Yes |
| Activation charge | NIL |
| Activation TAT after required KYC/verification | Within 3 working days |
| Must I visit the home branch for KYC updation? | No |
| Can V-CIP be used? | Where available and applicable |
| Amount unclaimed for 10 years or more | Separate DEA Fund / unclaimed-deposit rules apply |
Safety Note
Be careful if somebody contacts you saying that your account has become “dormant” or “inoperative” and asks you to activate it through a link.
Never share your:
- OTP
- ATM/debit-card PIN
- UPI PIN
- CVV
- Internet/mobile-banking password
Do not install a screen-sharing or remote-access application merely because somebody claims it is required to activate your account.
Use your bank’s official website, mobile app, branch or verified customer-care channels.
RBI — Financial Awareness Messages (FAME), including guidance on Inoperative Accounts.
Open RBI Financial Awareness Messages →
The information above has also been checked against RBI’s framework governing inoperative accounts, unclaimed deposits and KYC-related activation requirements.
Banking rules, contact details and procedures can change. If you notice information on this page that appears outdated or incorrect, please let us know.