Credit dividend on shares to savings bank account to be treated as a transaction: RBI

Reserve Bank of India (RBI) has now clarified that dividend being credited to the savings banks account is going to be treated as a transaction and the account cannot be declared dormant even if no other transaction has taken place for two years.

The notification clears the air about the confusion that had arisen on inoperative accounts which mentions that if there are no debit or credit transactions in the account for over a period of two years then the account will be treated as dormant.