Outlook Money
A bank account becomes inoperative when there are no customer-initiated transactions for more than two years, according to the Reserve Bank of India.
Customer-initiated transactions include cash deposits, withdrawals, fund transfers and other banking activities carried out by the accountholder through available channels.
When customers do not conduct customer-initiated transactions for more than two years, banks classify the account as inoperative under RBI guidelines.
Customers can reactivate an inoperative account by contacting their bank and completing the required KYC process at a branch or through video KYC.
Once the bank completes the required verification, access to banking services is restored. Regular transactions can help customers keep their accounts active.
If money remains unclaimed for more than 10 years, the bank transfers the balance to the RBI’s Depositor Education and Awareness Fund.
Customers or their legal heirs can still claim the unclaimed amount by approaching the concerned bank and completing the required process.