Why does a bank account become inactive, and how to activate it again? Know reasons and solutions

Bank Account: How does an account become inactive? This article provides insights into the processes by which bank accounts transition to inactive and dormant statuses, as well as guidance on how to prevent this from occurring. We will furnish you with comprehensive information regarding inactive and dormant accounts.

When an account is called inactive?

An account is classified as inactive if there are no transactions for a period of one year. While the account remains technically active, certain services may be restricted. In some instances, the bank may determine which services to suspend for security purposes, and it may also choose to block the account.

If an account remains inactive for 24 months, additional security measures are implemented, leading to a complete suspension of services, meaning no transactions can be conducted from that account. Importantly, no fees are incurred for accounts that are inactive or dormant, and reactivation can be performed without any charges.

Reactivation

To reactivate the account, the account holder must visit the bank branch in person and present necessary documentation (such as Aadhaar, PAN, Passport, etc.) to complete the KYC process. A formal application must be submitted to activate the account by filling out a designated form at the bank. Additionally, any minor transaction, such as a deposit, withdrawal, or transfer, should be conducted online.

How to prevent your account from becoming inactive?

To prevent your bank account from becoming inactive, it is advisable to regularly withdraw and deposit funds through ATMs, checks, or in-person visits to the bank. Engaging in transactions via Net Banking, Mobile Banking, or through UPI, IMPS, NEFT, and RTGS is also recommended. Furthermore, if there is an EMI set for auto-debit and the account balance is maintained, the account will not be classified as inactive.