What to do with your inoperative bank account?

People nowadays open multiple bank accounts due to one reason or other, but due to constraints of time or sheer apathy, they fail to operate all the accounts. As a result, one of the bank accounts becomes ‘inactive’ if the account holder fails to transact in the account for a continuous period of more than one year, and it becomes ‘inoperative’ if there is no transaction in the account for a continuous period of two years. If this happens, the bank sends a notice to the account holder informing that the account has been classified as ‘inactive’ or ‘inoperative’ account, as the case may be.

Banks may block the ATM card, deactivate internet banking and phone banking facilities and other services for an inactive or inoperative bank account. However, banks will credit interest on the balance amount in the inactive or inoperative bank account regularly.

To avoid your bank account being classified as ‘inactive’ or ‘inoperative’ you need to deposit or withdraw some amount from the account or transact from the account through cheques at least couple of times in a year. But just in case one of your accounts has become inoperative, there is no need to panic. To activate your account,

you just need to submit an application to the bank along with your identity proof and passbook or cheque book, explaining the reasons for the absence of transactions in the account. The bank will complete the requisite KYC formalities and activate the account within 24 days.