Dormant bank account worrying you? Here's how to revive it and access money

Reactivating a dormant bank account requires only a brief visit, updated KYC documents and a token transaction

Don't want to miss the best from Business Standard?

A bank account that has no customer transactions for two years is tagged as “dormant” or “inoperative” but the money in it remains safe. Customers cannot withdraw money or make online transfers until the account is reactivated.

 

Why accounts become dormant

 

Banks classify accounts as dormant to prevent misuse, fraud, and identity risks. Common reasons include:

 

• Salary credits stop after the account holder changes job

• Shift to another primary bank account

• Long-term non-operation due to relocation

• Joint accounts forgotten after life events

 

The account continues to earn interest, but transactions are restricted until you complete a short KYC and verification process.

 

Steps to reactivate your dormant account

 

The reactivation process is broadly similar across banks, though documentation and form formats may differ.

 

1. Visit the home branch (or request digital initiation)

Most banks still require an in-person verification for dormant accounts. Some allow you to start the request online but will ask you to visit the branch for final authentication.

 

2. Submit updated KYC documents

You will typically need:

• PAN

• Aadhaar or another valid address proof

• A recent photograph

• A filled reactivation request form

 

If the address or mobile number has changed, update these details during the same visit.

 

3. Perform a small transaction

A token deposit or withdrawal, often as little as Rs 100, helps the bank mark the account as operational again. This is mandatory in many institutions after KYC is verified.

 

Charges and safety of your funds

 

Banks do not levy a penalty for reactivation. The only costs may be for new chequebooks or replacement debit cards, if you choose to request them. Your balance remains protected throughout; banks are not permitted to forfeit funds in dormant accounts. If an account stays untouched for ten years or more, the money is moved to the Depositor Education and Awareness Fund, but it can still be claimed at any time through the bank.

 

How to avoid dormancy in future

 

A simple transaction every few months keeps an account active. Setting a small standing instruction, such as a recurring deposit or a monthly transfer, can ensure the account remains in regular use.

 

This process is designed to protect customers, and reactivation is largely hassle-free. A short visit and updated documentation are usually all it takes to resume full access to your funds.