Have you found some old, forgotten bank accounts with money still sitting in them? If so, you’re not alone. Many people have dormant accounts that haven’t been accessed in years. Whether it’s a forgotten savings account or an old salary account, the thought of retrieving money from inactive accounts can seem daunting. But don't worry! There’s an easy way to withdraw every single rupee that belongs to you.
What Happens to bank Accounts When They're Inactive?
A bank account becomes inactive when there is no transaction or activity for a certain period. The typical period for an account to be considered inactive or dormant is two years (although this may vary by bank).
Once an account becomes inactive, the following things might happen:
· No withdrawals or deposits can be made.
· You may lose access to online banking or ATMs linked to the account.
· Account charges or fees may start accumulating, and interest accrual could stop.
· The bank might classify the account as dormant after a period of inactivity (generally 2 years or more).
How to Withdraw Money from a Dormant bank Account
If you’ve got money stuck in an inactive account, here's how you can retrieve it:
Step 1: Check the Status of the Account
· Visit the bank: You need to visit the branch where your account is held. Banks are required to keep you informed about your account status. You can inquire about the status of your dormant account.
· Contact customer service: If you can access customer service through phone banking or online services, you can ask for the current status of the account.
Step 2: Reactivate the Account
To access the funds in your dormant account, you need to reactivate it. Here’s how to do it:
· Submit KYC Documents: Depending on the bank's policy, you may need to re-submit your Know Your customer (KYC) details. This could include providing identification documents like:
o aadhar card
o PAN card
o Proof of address
· Request reactivation: You can fill out a form to reactivate your dormant account. The bank might also ask you to sign a declaration that confirms you are the rightful owner of the account.
· Make a Transaction: Often, reactivating your account will require you to make a small deposit or withdrawal (e.g., transferring a nominal amount or withdrawing some funds).
Step 3: Withdraw the Money
Once your account is reactivated, you can easily withdraw the balance through:
· ATM or Debit Card
· Online Banking
· Branch Withdrawal: If online services are unavailable, you can go to the bank branch and request a withdrawal.
Step 4: Keep the Account Active
To avoid the account becoming dormant again in the future, make sure to regularly use it. A small deposit or withdrawal every few months can prevent your account from becoming inactive again.
What to Do If the Account is Closed or Inactive for Too Long?
If the account has been dormant for several years, there’s a chance that the bank might have closed it. But don't panic—your money isn't lost. According to the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) regulations, if an account is closed, the bank should transfer the funds to a savings bank account with a parent branch or to a centralized account. Here's what you can do:
1. Inquire with the Bank: If the account has been closed, the bank should have transferred the balance. Go to your bank branch and inquire about where the funds have been transferred. They will be able to guide you to the right place.
2. Contact the banking Ombudsman: If you are unable to retrieve the funds even after multiple attempts, you can file a complaint with the Banking Ombudsman or contact the RBI for assistance.
What if the bank Charges Fees on Dormant Accounts?
Banks may charge fees for dormant accounts as part of their policy. However, these charges can be avoided if you reactivate the account before they accrue too much. In case fees have already been charged, you can ask for a waiver, especially if the inactivity was due to a lack of awareness or inability to access the account.
Tips to Avoid Dormant Accounts in the Future
To keep your bank account active and accessible, follow these simple tips:
1. Monitor Your Accounts: Regularly check the status of your accounts and make sure to keep track of any minimum balance requirements or fees.
2. Automate Transactions: Set up automatic transactions like bill payments or savings transfers to keep your account active.
3. Maintain Small Deposits: Even if you don’t use the account much, a small monthly deposit can ensure it doesn’t turn dormant.
Conclusion
Having money stuck in an inactive bank account can be frustrating, but the process of retrieving those funds is fairly simple. By reactivating the account through KYC updates and making a small transaction, you can withdraw every rupee that is rightfully yours. If the account has been closed, the funds are still traceable, and you can easily retrieve them with some persistence.
Always make sure to stay on top of your bank account's activity to prevent dormancy in the future.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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