Smart things to know about inoperative/dormant accounts
1) A bank account may be classified as inoperative or dormant if it has had no debit or credit transactions for more than two years.
2) While classifying accounts as inoperative, bank-induced transactions like interest credit on the balance in the account or debit of service charges will not be considered.
3) Once an account is classified as inoperative, services such as ATM facility can be suspended and account operations can be conducted only from the home branch.
4) Usually, there is no charge if an account is declared dormant. However, if the amount falls below the minimum balance requirement, the bank may levy a charge.
5) Banks are required to send a written communication to the account holder before classifying an account as inoperative or dormant.
6) If a fixed deposit account matures and the proceeds are unclaimed, the savings interest rate must be paid on the account.
Source: Economic Times
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