RBI to Bank: If you have a bank account in which you have not done any transaction for a long time or have forgotten to use it, then this news is important for you. The Reserve Bank of India has ordered to freeze and close such bank accounts. RBI has ordered to deactivate such bank accounts. RBI asked the banks to take necessary steps to freeze those bank accounts in which transactions are not being done for a long time.
What are inactive bank accounts
Dormant bank accounts are those in which there is no transaction for a period of 12-24 months depending on the bank policy. If there is no transaction in the account for this period, then the account is considered inactive.
These bank accounts will be frozen
RBI has asked banks to reduce the number of inactive accounts. They have been asked to provide the number of such bank accounts on a quarterly basis, in which there has been no activity for a long time. RBI has asked the banks to take necessary steps to reduce the number of inactive or frozen accounts ‘immediately’ and also provide information about their number on a quarterly basis.
Expressing concern over the increasing amount of funds lying in such accounts, the RBI said its supervisory inspections have revealed several problems leading to the accounts becoming inactive or ‘frozen’. The RBI’s Department of Supervision recently conducted an analysis, which revealed that the number of inactive accounts/unclaimed deposits in many banks was high in terms of their total deposits as well as in absolute terms.
The notification issued to the heads of all banks said, “Banks are advised to take immediate necessary steps to reduce the number of inactive/unclaimed accounts and to make the process of activating such accounts easy and hassle-free.” It suggested that banks may consider enabling seamless update of KYC (Know Your Customer) through mobile/internet banking, various branches and video customer identification process.
They should take necessary steps to reduce the number of inactive or frozen accounts ‘immediately’ and also provide information about their number on a quarterly basis. Expressing concern over the increasing amount of money lying in such accounts, RBI said that its supervisory inspections have revealed many problems, due to which accounts are becoming inactive or ‘frozen’. RBI’s supervision department recently conducted an analysis, which revealed that the number of inactive accounts / unclaimed deposits in many banks was high in terms of their total deposits as well as in absolute terms.
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