RBI Warning: Update KYC Immediately to Avoid Losing Access to Your Bank Account

When a bank account has no transactions (deposits or withdrawals) for 10 consecutive years, it is declared inactive. Upon this inactivity, the funds held in the account are transferred to the RBI’s Depositor Education and Awareness Fund (DEAF).

Once dormant, you cannot withdraw money from your account, and online transactions are also halted. This situation becomes even more serious if your FD matures but you do not withdraw it for 10 years, which also becomes dormant.

First Step to Activate

The first and most important step to activate is to update your KYC. This requires visiting your bank’s home branch, as RBI regulations prohibit activating a dormant account online. It is essential to visit the bank for physical verification.

Required Documents

Aadhaar Card

PAN Card

Recent Photograph

Address Proof

The bank will verify your documents and then begin the activation process. During this time, the bank may ask you to complete a small transaction, such as a deposit or withdrawal of ₹100. Once this process is complete, the account is usually activated within a few days.

The Truth About the DEAF Fund and Fees

The RBI has clarified that banks cannot charge any fees for dormant accounts. However, general service charges, such as SMS alerts, minimum balance, or checkbook fees, may apply after activation.

How to Get Your Money Back from the DEAF Fund

If your bank has transferred your funds to the RBI’s DEAF Fund, there’s no need to panic. You can withdraw this amount from the bank after activating the account. However, this process is a bit lengthy, as the bank conducts a thorough check of your records, signature, and identity. It’s crucial to keep your bank account active and conduct regular transactions so that you always have access to your funds and can access them without hassle in case of any financial need.

Note: Any changes to documents, such as a mobile number or signature, may delay the activation process.